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Auditing/Audit confirmation process

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Expert: Don Sadler - 3/26/2004


Question
If the customer did not give any information, and asked not to
mail them documentation, what would be a possible alternative
to confirm customer's accounts?  The customer is a stocker
broker firm.  

Answer
I presume you are talking about verifying accounts receivable. If that is the case, other than meeting personally with their Accounts Payable manager, I am not aware of any alternative. If this customer represents a major portion of the accounts you you must verify, and you are unable to verify, then you must either qualify your opinion or limit the scope of your audit to exclude Accounts Receivable.

This is very odd and, as an auditor, I would be very suspicious if a customer acted this way.

Auditing

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Don Sadler

Expertise

I can answer regarding Internal Auditing - especially operational audits, audit management, and how to revitalize a dysfunctional audit department. Also give advice to "auditees" on how to deal with auditors.

I DO NOT ANSWER HOMEWORK OR CLASS PROJECT QUESTIONS. For those answers, I suggest you scan previously asked questions and search on your favorite search engine.

I ALSO DO NOT ANSWER TAX QUESTIONS AS THIS IS NOT WITHIN MY EXPERTISE. NOTE: I am not an accounting expert although i will try to help if I can... ask at your own risk.

Experience

I have worked in the public and private business management arena with experience in OMB, Resource Management, Internal Auditing and consulting. I am a former President of the Inland Empire Chapter Institute of Internal Auditors, previously held Director positions in the Orange County Information Systems Audit and Control Association and the Northern Telecom International User's Association. I am a Certified Fraud Examiner and a Certified Information Systems Auditor.

Organizations
Institute of Internal Auditors, Association of Certified Fraud Examiners, and Information Systems Audit and Control Association (ISACA)

Education/Credentials
MBA, CISA, CFE

Founder and Principal of Applied INTEGRITY Management Consulting Group

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