ACCA Audit and Assurance (F8) Practice Exam

When a circularisation letter does not elicit a response, sending a second or third request to customers is essential to ensure the completeness and reliability of the information needed for the audit. Circularisation is a key audit procedure used to confirm balances or transactions with third parties. If initial requests go unanswered, it indicates there could be issues with obtaining the necessary evidence, which might affect the audit findings.

By following up with additional requests, the auditor demonstrates due diligence and exhausts reasonable efforts to obtain reliable confirmations. This step helps to identify any potential discrepancies between the client’s records and the external confirmations. Furthermore, it reinforces the importance of obtaining sufficient appropriate audit evidence, as required by auditing standards.

While it may seem tempting to ignore the lack of responses or to consider alternative interventions, such as involving the bank, these actions do not align with standard auditing practices that prioritize confirming information directly with parties involved in financial transactions. Continuously seeking valid confirmations supports the integrity and thoroughness of the audit process.