- 15 Marks
AA – May 2019 – L2 – Q5 – Audit Evidence
Justification for requiring confirmations of receivables, payables, and bank balances, and contents of confirmation letters.
Question
In the course of an audit assignment, an auditor requires an independent and external confirmation for the following items:
- Receivables
- Payables
- Bank Balances
You are required to:
a. Justify the need for confirmation in respect of the items listed above. (9 Marks)
b. State the contents of each of the letters sent to request for confirmation in TWO of the items stated above. (6 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit Confirmation, Audit evidence, Bank Balances, Payables, Receivables
- Level: Level 2
- Topic: Audit evidence
- Series: MAY 2019
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