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What Procedures Should an Auditor Perform for a Positive Confirmation

question 27

Essay

What procedures should an auditor perform for a positive confirmation that is not returned by the client's customer?


Definitions:

Accrued Revenues

Revenues that have been earned through goods or services delivered, though payment has not yet been received.

Unearned Revenues

Money received by an individual or company for a service or product that has yet to be provided or delivered.

Accounting Period

A specific duration of time for which financial activities are reported and analyzed, usually a year or a quarter.

Salaries Expense

Represents the total amount paid to employees for services rendered during a specific period.

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