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You have sent confirmations to 40 customers of Berg Shovick Express a long-time audit client experiencing some financial difficulty The company sells specialized high-technology goods

You have sent confirmations to 40 customers of Berg Shovick Express, a long-time audit client experiencing some financial difficulty. The company sells specialized high-technology goods. You have received confirmations from 32 of the 40 positive confirmations sent. A few minor errors were noted on these accounts, but the projected amount of errors on the confirmations returned is just below tolerable error. The following information is available to you: Book value of receivables .............. $7,782,292 Book value of items selected for confirmations ..... $3,100,110 Book value of items confirmed ........... $1,464,000 Audit value of items confirmed ............ $1,335,000 Summary of items selected but confirmations not returned:  a. Indicate the audit procedures (and be specific as to what those procedures will accomplish) to complete the work on accounts receivable related to the confirmation process. In other words, identify the specific alternative audit procedures that should be performed. b. Assuming that all items could not be cleared to the auditor s satisfaction, identify the audit procedures that should be implemented to finish auditing the valuation and existence assertions for accountsreceivable.

Apr 05 2020 View more View Less

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