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MMLU / An audit client has a valid reason for requesting that a certain account…

Problem

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question

An audit client has a valid reason for requesting that a certain account receivable that the auditor has selected for confirmation not be confirmed. Under these circumstances the auditor should

choices

  1. Verify the account balance by inspecting the client's bank statements and cash receipt records.
  2. Select at random a different account for confirmation that is approximately the same size.
  3. Request the client's management to document the matter in the management representation letter.
  4. Explain to the client that the request will most likely cause the auditor to disclaim an opinion.

subject

professional_accounting

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