Correspondence.

Please refer to first page of Chapter 17 - page 87 - are you talking about external confirmation? I don't know what you mean "bills will be received".

I reckon the question was too vague sorry for that. In the substantive testing for receivables one of the test was correspondence.. Hereby Mr Ken Garrett told that we are expected to talk to the client's customer and make sure that the goods were up to mark and bills would be received... However my question : are the external auditor responsible for this correspondence with clients customer or the client themselves.?

Oral communication would only be a follow-up to non-reply to a request for external confirmation (written) and with the client's permission. But I can say that in my 7 years working as an auditor (trainee to manager positions), I never encountered this in practice. The auditor might rely on written correspondence between a client and customers - e.g. regarding a dispute over pricing over unpaid invoices - when considering the adequacy of an allowance for trade receivables. I don't think sufficient reliance can be put on the word of a customer over the telephone to make it a procedure worth bothering with.

Ohkk sir, I watched the lecture it was explained that we will initially telephone them further write to them. Well is this the duty of external auditor?? Or employees of the firm itself?

Not the external auditor. It would be the client's credit controller who calls clients to ask about payments.