All allowances to customers for returned or defective merchandise should be supported by serially numbered credit memo signed by an officer or responsible employee having no duties relating to handling cash or the maintenance of customers' ledgers. The auditors should perform alternative auditing procedures on all negative confirmation requests that are not returned. When it is "impossible" to confirm accounts receivable, the auditors can never issue an unqualified oinioo.on the client's financial statements.
All allowances to customers for returned or defective merchandise should be supported by serially numbered credit memo signed by an officer or responsible employee having no duties relating to handling cash or the maintenance of customers' ledgers. The auditors should perform alternative auditing procedures on all negative confirmation requests that are not returned. When it is "impossible" to confirm accounts receivable, the auditors can never issue an unqualified oinioo.on the client's financial statements.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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