Define the Response Rate as It Pertains to Positive Accounts

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The Answer is Response rate is the portion of total confirmations sent which have been returned to the auditor.Generally, in order to increase the response rate, the auditor will send second and in some cases third requests.The response rate can be increased by:
i.Using a postcard sent in advance notifying the debtor that a confirmation is coming.ii.Using special delivery mail.
iii.Using first class postage to mail responses instead of a postage meter.
iv.Using a stamp on the envelope saying "confirmation enclosed examine contents carefully".v.Contacting the debtor and asking them to respond by facsimile.
These efforts will increase the cost of confirmation procedures, but the benefit is a better response rate and more sufficient appropriate audit evidence about existence.

Define the Response Rate as It Pertains to Positive Accounts

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