When Positive Confirmations Are Used, ASA 505 Requires Follow-Up Procedures

question 37

Multiple Choice

When positive confirmations are used, ASA 505 requires follow-up procedures for confirmations not returned by the customer.In such a situation, which of the following would NOT be classified as an alternative procedure?

• A) Send a second confirmation request.
• B) Examine subsequent cash receipts to determine if the receivable has been paid.
• C) Examine the customer's purchase order and the duplicate sales invoice to determine if the merchandise was ordered.
• D) Examine shipping documents to verify that the merchandise was shipped.

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