With the positive confirmations, we are trying to find information on account balances or specific invoices. We sent positive confirmations to Neutralizer, Mall-Wart, Run For Your Life Shoes, Paul Bunion Footwear, Sassy Shoes, and International Soccer Federation. We sent a negative confirmation to Tread. The ones that we sent a positive confirmation to, we were wondering about some discrepancies in the numbers and needed confirmation that payments were being made. The negative confirmation was sent with confidence that there were no errors. Therefore, we did not need a response if nothing was found.
We checked the numbers that we received from the confirmation and compared them to the aged trial balance for account receivable. The numbers matched up. Alternative Procedures Sometimes customers are not able to send a response. A reason for this could be that they are on a voucher system that lists payables by invoice instead of by vendor account. In a case like this, we have to perform alternative procedures. We could examine subsequent cash receipts. We could examine sales orders, invoices and shipping documents. We could also examine correspondence files for past due accounts.