Troy University Accounts Receivables and Credit Memos Discussion
Sally Smith, CPA, was auditing Keep Safe, Inc. Smith sent positive accounts receivable confirmations to a number of Keep's government customers. She received a number of returned confirmations marked "We do not confirm balances because we are on a voucher system."
A. Discuss alternative procedures that Smith might use to ensure the validity of these accounts.
b. Assuming all the procedures you discussed are viable options for the Keep audit, which procedures do you believe provides the highest-quality evidence and why?
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