CAF-8 · Chapter 4 · Question 6 of 10
If an auditor is unable to obtain a response to a positive external confirmation request from a major debtor, what is the required next step?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Perform alternative audit procedures to obtain relevant and reliable evidence.
Explanation
In the case of non-responses to positive confirmations, the auditor cannot assume the balance is correct and must perform alternative procedures, such as verifying subsequent cash receipts.
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