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

A high level of assurance provides greater confidence in the matter being assured. For an auditor to…

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?

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Your answer is incorrect.
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.
O 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.
O 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.
O None of these answer choices are correct.

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