What factors should auditors consider when evaluating

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Reference no: EM133659511

Question: You (Donna) are a staff auditor in your second year with a public accounting firm. This week you have been assigned to work on the BBB audit, which is already nearing completion. The staff auditor (Robert) who was working on the BBB audit was just reassigned to a new out-of-town client and was not able to complete her work on BBB. As you arrive at the client's headquarters, you are met by the audit senior assigned to BBB, Jenna. Jenna asks you to start by finishing the evaluation of the accounts receivables balances. Confirmations were mailed to selected customers a few weeks ago. Robert completed an evaluation of all but seven of the receivables confirmations before being reassigned. The seven remaining confirmations either indicated a potential misstatement or were not received before the Robert left. Jenna also told you that some of the returned confirmations may require added follow-up to determine if differences highlighted by customers represent actual misstatements or can be explained (i.e., by timing differences).

REQUIRED 1) What factors should auditors consider when evaluating the results of confirmation procedures and what does it mean to "maintain control" over the confirmation requests and responses?

Reference no: EM133659511

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