Sonam Balasaheb Yewale asked 3 years ago
By performing External Confirmation we get Completeness of transaction of account receivables as well as existence of balances then how would be answer is only Existence?
1 Answers
Ravi Staff answered 3 years ago
it gives good evidence for existence
may give some evidence about valuation, debtor’s aging is best for it
may give some evidence regarding completeness, checking completeness means identifying missing debtors, we are sending external confirmation requests to identified and recorded debtors, so its not effective for completeness, for completeness compare with previous years, compare with current sales etc