A customer selected for a positive receivables confirmation does not reply, even after a follow-up request. What is the most appropriate alternative procedure?

Correct answer: A) Inspect cash received from the customer after the year end and agree it to specific year-end invoices

Explanation

ISA 505 requires alternative procedures for non-responses to positive confirmations. After-date cash receipts that clear specific year-end invoices provide strong evidence of existence, and inspecting dispatch notes and orders is another option. Silence cannot be treated as agreement under positive confirmation, and replacing the item would bias the sample.