Question

Aicpa auditing standards address the confirmation of accounts receivable for private company audits. what are the circumstances under which confirmation of accounts receivable is not required

Answer 1

Answer:

Confirmation of accounts receivables is not required when the account information is immaterial.

An account is said to have immaterial information when the account doesn't reflect any important or relevant information that can affect the opinions or decisions of shareholders, potential investors or creditors of the company.

The auditors have the responsibility of deciding what information is relevant and important and what is immaterial