In a Sample of Confirmations Sent to the Auditee's Customers,one

question 30

Multiple Choice

In a sample of confirmations sent to the auditee's customers,one customer failed to respond,despite the mailing of a second request.In this case,which of the following would NOT be an appropriate response?

• A)When the auditor concludes from the confirmations received that accounts receivable is fairly stated and the customer's balance from the nonresponse could impact on that assessment,expand the sample,performing alternative procedures on the additional balances selected.
• B)When the auditor concludes from the confirmations received that accounts receivable is fairly stated and the customer's balance from the nonresponse is insignificant,it can be ignored.
• C)When the auditor concludes from the confirmations received that accounts receivable is materially misstated and the customer's balance from the nonresponse is insignificant,it can be ignored.
• D)Increase the initial assessment of incorrect acceptance and revise the sample size accordingly.