Explain the distinction between bank confirmation and positive confirmation of accounts receivable. And, also explain the difference in terms of the nature of information confirmed, the sample size , and the appropriate action when the confirmation is not returned after second request and also explain the rationale for differences between these types of confirmation.

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Why is it more important to search for unrecorded notes payablethan for unrecorded notes receivable? Suggest audit procedures that the auditor can useto uncover unrecorded notes payable.

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Chapter 23, Problem 4RQ

To determine

Explain the distinction between bank confirmation and positive confirmation of accounts receivable. And, also explain the difference in terms of the nature of information confirmed, the sample size, and the appropriate action when the confirmation is not returned after second request and also explain the rationale for differences between these types of confirmation.

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Why is it more important to search for unrecorded notes payablethan for unrecorded notes receivable? Suggest audit procedures that the auditor can useto uncover unrecorded notes payable.

Which of the following statements about confirming accounts receivable (A/R) and accounts payable (A/P) is true? Question options: A/R confirmations are more likely to include the client's balance than A/P confirmations. A/R and A/P are always confirmed regardless of the materiality of the balance or risks of material misstatement. The assertion with the highest risk of material misstatement for A/R and A/P is Existence. Positive and negative confirmations are always used to audit A/R and A/P.

How do bank confirmations differ from positive confirmations ofaccounts receivable? Distinguish between them in terms of the nature of the informationconfirmed, the sample size, and the appropriate action when the confirmation is notreturned after the second request. Explain the rationale for the differences between thesetwo types of confirmations