Identify and describe the two primary forms of accounts receivable confirmation re- quests and indicate what factors Chen will consider in determining when to use each.
Chen, CPA, is auditing the financial statements of a manufacturing company with a significant amount of trade accounts receivable. Chen is satisfied that the accounts are correctly summarized and classified and that allocations, reclassifications, and valuations are made in accordance with GAAP. Chen is planning to use accounts receivable confirmation requests to obtain sufficient appropriate […]