What is a positive confirmation?
When the audit team sends positive confirmations, Customers of the company will receive a confirmation from the auditor and will be asked to send back a statement with whether or not they agree with the confirmation of the auditor.
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Is the audit team required to send accounts receivable confirmations?
Yes, for most firms, the audit team is required send confirmations to customers to confirm their outstanding balance at year-end. If the audit team determines that sending confirmations is a waste of time, they can perform alternative procedures, but that typically results in extensive documentation. The primary reason is to test the existence & occurrence […]