Question: You are conducting the audit of Superior Company as of December 31, 2008. The following accounts receivable confirmations were sent out by you and returned to you from Superior's customers. Based on the customer's comments indicate what action you would take.
January 15, 2009
Baker Company
18 Lakeview Drive
Rocky Hill, Ct. 06262
Dear Mrs. Baker,
Our auditor, Miller, CPA, is currently auditing our financial statements. To facilitate that audit, please confirm the balance due us as of December 31, 2008 which is shown on our records as $25,000. Indicate in the space below whether this is in agreement with your records. If there are exceptions please provide information please provide any information that will assist our auditors in reconciling the difference.
Please mail your reply directly to Miller, CPA. A stamped, self addressed envelope is enclosed for your convenience.
James Blake
James Blake
Controller
Superior Company
To Miller, CPA:
The amount shown above is correct as of December 31, 2008, except as follows:
Sure we ordered $25,000 of merchandise on October 10, 2008, but Superior was out of stock until recently. They back ordered the goods and we finally received them on january 4, 2009.
Nancy Baker
January 15, 2009
Grove Retailing.
3838 Curtis Street
Hartford, Ct. 06703
Dear Mr. Jones,
Our auditor, Miller, CPA, is currently auditing our financial statements. To facilitate that audit, please confirm the balance due us as of December 31, 2008 which is shown on our records as $24,000. Indicate in the space below whether this is in agreement with your records. If there are exceptions please provide information please provide any information that will assist our auditors in reconciling the difference.
Please mail your reply directly to Miller, CPA. A stamped, self addressed envelope is enclosed for your convenience.
James Blake
James Blake
Controller
Superior Company
To Miller, CPA:
The amount shown above is correct as of December 31, 2008, except as follows:
We received $24,000 of goods on consignment from
Superior on December 10, 2008, but they are not sold yet.
Andy Briggs
January 15, 2009
Clark Retailing
48 Harvest Street
Hartford, Ct. 06762
Dear Mrs. Smith
Our auditor, Miller, CPA, is currently auditing our financial statements. To facilitate that audit, please confirm the balance due us as of December 31, 2008 which is shown on our records as $75,000. Indicate in the space below whether this is in agreement with your records. If there are exceptions please provide information please provide any information that will assist our auditors in reconciling the difference.
Please mail your reply directly to Miller, CPA. A stamped, self addressed envelope is enclosed for your convenience.
James Blake
James Blake
Controller
Superior Company
To Miller, CPA:
The amount shown above is correct as of December 31, 2008, except as follows:
Our records show that a check for $75,000 was mailed on December 27, 2008.
Mary Smith
Controller
January 15, 2009
Hall Enterprises, Inc.
35 Green Street
Bridgeport, Ct. 06203
Dear Mr. Hall,
Our auditor, Miller, CPA, is currently auditing our financial statements. To facilitate that audit, please confirm the balance due us as of December 31, 2008 which is shown on our records as $24,000. Indicate in the space below whether this is in agreement with your records. If there are exceptions please provide information please provide any information that will assist our auditors in reconciling the difference.
Please mail your reply directly to Miller, CPA. A stamped, self addressed envelope is enclosed for your convenience.
James Blake
James Blake
Controller
Superior Company
To Miller, CPA:
The amount shown above is correct as of December 31, 2008, except as follows:
Note to files - This confirmation was returned by the postal service as"return to sender - no such addressat this location". John Hancock, Staff Auditor
January 15, 2009
Atom Co.
362 Main Street
Hartford, Ct. 06702
Dear Mr. Adams,
Our auditor, Miller, CPA, is currently auditing our financial statements. To facilitate that audit, please confirm the balance due us as of December 31, 2008 which is shown on our records as $15,000. Indicate in the space below whether this is in agreement with your records. If there are exceptions please provide information please provide any information that will assist our auditors in reconciling the difference.
Please mail your reply directly to Miller, CPA. A stamped, self addressed envelope is enclosed for your convenience.
James Blake
James Blake
Controller
Superior Company
To Miller, CPA:
The amount shown above is correct as of December 31, 2008, except as follows:
Yes, we ordered $15,000 worth of merchandise from Superior in November. However, we mailed Superior a check on December 18, 2008.
John Adams
Auditor's note: Controller Blake indicates that the check was received on December 28,