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What should the audit team do if a customer does not respond to a confirmation?

If the audit team doesn’t receive a response on confirmations that were sent, the first step would be to send a second or third confirmation request. If the customer still doesn’t respond, the audit team will be forced to perform alternative procedures, like liquidating the receivable.

To liquidate the receivable, the audit team would see if the customer paid their outstanding balance in the first few months of the following year. If the customer paid the receivable, that more or less confirms that it was a valid receivable at year-end.

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