Audit standards indicate that there is a presumption thatauditors will confirm accounts receivable unless the balance isimmaterial, confirmations are deemed ineffective, or the auditors’assessment of risk is low and other procedures will achieve thesame objective. However, these instances are considered few and farbetween and current trends in auditing indicate that there is anexpectation that accounts receivable will be confirmed. Auditorsmay stratify the population, use haphazard or judgmental sampling,and send positive or negative requests.

1. Should Jenner and Jenner CPAs send accounts receivableconfirmations?

2. How should they mitigate the risk associated with both verylarge and very small balances?

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3. Because so many customer balances consists of multipleinvoices, what could they do to eliminate unnescessaryreconciliation?