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During the audit of Millennium Corporation, the audit firm, Tyson CPAs has advised firm management...

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Accounting

During the audit of Millennium Corporation, the audit firm, Tyson CPAs has advised firm management that they plan to confirm a sample of accounts receivable balances with a randomly selected pool of the client's customers. The client has refused permission for the auditors to undertake this procedure, citing customer privacy over balances owed to the firm. At this juncture, what might the auditors decide to do?
The auditors are most likely to consider withdrawing from the engagement. If management is uncooperative, it is probably because they are hiding fraud or other material errors.
The auditors are likely to proceed with contacting a sample of accounts receivable customers anyway. As these customers represent third parties, the auditor does not need the client's expressed permission to contact them.
The auditors may attempt perform alternative audit procedures. If they are able to do this, they may be able to offer the same level of assurance in this area.
None of these answer choices are correct.
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