A company has bank borrowing amounting to $ 100,000 (previous year $400,000). Materialty is $150,000. Auditor has verified some loans by sending confirmation leters to the relevant banks. no further work carried out in this area becuse total borroing are less than materiality. has sufficient appropriate audit evidence been obtained.
Yes he is applying sampling method and confirm few balances and if replies is satisfactory no further work are required.
I think confirmation is substantive test?
I need help on how to carry out audit procedures, aclear format
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