©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens//Elder/Beasley
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Confirmations Are Required, Except When:
1.Accounts receivable are immaterial.
2.The auditor considers confirmations
ineffective evidence because response
rates will likely be inadequate or unreliable.
3.The combined level of inherent risk and
control risk is low and other substantive
evidence can be accumulated to provide