CAF-8 · Chapter 9 · Question 4 of 10
If a debtor fails to respond to three positive confirmation requests, which alternative procedure should the auditor perform to verify the existence and valuation of the receivable?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Review subsequent cash receipts from the debtor after the year-end.
Explanation
Verifying that the debtor actually paid the balance after the year-end (subsequent cash testing) is the most persuasive alternative evidence for existence and valuation.
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