Reference no: EM132741095

Question: You are auditing Purple Pty Ltd (Purple). Your audit assistant, Frank Porter, made the following entry in the audit working papers.

"Two members of the audit team were absent from work because of illness on the days we tested accounts receivables, so, to assist us, Purple's senior accountant offered to help out with the debtor confirmations. I was glad to accept her offer because we were falling behind schedule. I gave her a blank copy of the confirmation letters and she filled in the details and posted them. Debtors replied directly to her, and she collated the responses and provided me with a report. I read the report, and noted that all balances had been confirmed. I concluded that the net value of accounts receivable recognised in the draft financial statements was fairly stated".

Required: (i) Do you agree with the conclusion reached by Frank Porter? Explain your answer.

(ii) Has he based his conclusion on sufficient appropriate evidence? Explain your answer.