You have decided to use positive confirmations as a substantive audit test of accounts receivable....
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Accounting
You have decided to use positive confirmations as a substantive audit test of accounts receivable. Assume you have selected balances to confirm from your clients accounts receivable subsidiary ledger at year-end and you have sent letters directly to customers based on these selections. Answer and clearly explain each of the following: A.) What is a positive confirmation? B.) Is this a vouching or tracing test? C.) What will you do if no response is received from a customer? Be specific.
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