External Confirmation Changes Under SAS 150   New

Upon successful completion of this course, the user should be able to:

• identify the circumstances in which SAS 150 creates a presumption that external confirmation procedures should be performed for accounts receivable and cash and cash equivalents held by third parties;

• distinguish external confirmations from direct access procedures and other alternative audit procedures, including the conditions affecting the reliability and persuasiveness of each form of audit evidence; and

• evaluate the design, execution, and results of external confirmation procedures, including auditor control, use of intermediaries, response reliability, confirmation exceptions, and circumstances permitting the use of negative confirmations.