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PART II 1. Choose from choices 1 through below, what course of action the auditor should take in each of the following cases relative to accounts receivable confirmations (assume a 12/31 year end)? (2 points each) a. b. c. The auditor sent a positive confirmation to a customer and received no response The auditor sent a negative confirmation to a customer and received no response. The auditor sen the goods were returned on December 26th, prior to the 12/31 year-end and thus the customer feels he should have a zero balance. t a confirmation to a customer and received a response saying that d. The auditor sent a confirmation to a customer and received a response saying that e. The auditor sent a confirmation to a customer and received a response saying that f. The auditor sent a confirmation to a customer and the confirmation came back, g. The auditor sent a confirmation to a customer and received a response saying that the customer had already paid for these goods in November. the company has a voucher system and thus can't verify the balance. addressee unknown. the customer owes no money and has not ordered anything from the client in quite a while. 1. Check shipments to customers 2. Verify the customer's mailing address 3. Do nothing 4. Check the cash receipts journal 5. Send another confirmation 6. Get a management representation letter 7. Check the customers to determine what invoices were debited to the customer's account 8. Check the credit memos issued and list of goods received in December 9. Check credit memos for returned items 10. Perform alternate procedures such as verifying subsequent cash receipt

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