CPA · Question 21 · Area III: Performing Procedures
An auditor is performing an audit of a nonissuer. The auditor sends a confirmation request to a bank. The bank responds but includes a disclaimer stating: 'Information is furnished as a matter of courtesy and without responsibility on the part of the bank or its officers.' How should the auditor assess the reliability of this confirmation?
Answer options:
The confirmation is invalid and cannot be used as evidence.
The auditor must perform alternative procedures because the bank accepted no responsibility.
The disclaimer does not invalidate the reliability of the confirmation for verifying the account balance.
The auditor should treat this as a non-response.
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