Why does the auditor send confirmation letters to your debtors?

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5 questions on this topic: pick an option or reveal the answer.

1. The auditor sent an external confirmation request to one of the debtors of "Guliston ulgurji", but the debtor did not respond at all. What does the auditor usually do?

   AAutomatically treats the balance as confirmedBPerforms alternative procedures: subsequent payments, shipping documents, contractsCRequires management to remove this debtor's balance from the financial statementsDRequires the company's accounting department to obtain the answer orally and pass it on
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2. The financial statements of "Bodomzor savdo" LLC significantly overstate revenue, inventories and receivables: the misstatements are material and spread across the main items of the statements (pervasive). The auditor confirmed this with sufficient evidence, and management refused to correct them. What opinion is expressed under ISA 705?

   AQualified opinionBUnmodified (clean) opinionCDisclaimer of opinionDAdverse opinion
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3. Internal control at "Gulobod sut" is very strong; the auditor performed tests of controls and confirmed that they operated effectively. Under ISA 330, what happens to substantive procedures for material account balances (for example, receivables)?

   ABecause the controls are effective, substantive procedures are dropped entirelyBSubstantive procedures are performed only for balances assessed as high riskCRegardless of the assessed risk, they are still performed for each material balanceDInstead of substantive procedures, only an oral inquiry of management is obtained
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4. The management of "Nurota marmar" did not allow the auditor to send its largest customer a letter confirming the balance owed. Following the logic of ISA 505, what does the auditor do?

   AInquires about the reasons for the refusal; this may affect the auditor's reportBObtains management's oral assurance and treats the receivable as testedCStops the audit at once and issues an adverse opinion without finding out whyDInstead of a confirmation, relies on a reconciliation statement prepared by the company itself
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5. In the audit of "Zarmitan agro", the auditor could not obtain sufficient evidence on the warehouse balance. The manager gave a written confirmation that "the balance is correct". What is the role of this letter as audit evidence?

   AIt fully replaces sufficient evidence and no further procedures are neededBIf the manager's signature is certified with a seal, it is full evidenceCIt supplements other evidence, but cannot replace it on its ownDIt is not audit evidence, and the auditor does not include it in the working papers at all
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