How should you handle nonresponse in confirmations?

• A. Evaluate reliability; pursue alternatives; document; adjust conclusions.
• B. Ignore nonresponse.
• C. Assume no error.
• D. Cancel the engagement.

Answer: (A)

When confirmations don’t get a reply, the key idea is to treat that nonresponse as a reason to reassess the evidence you have and to obtain additional, independent evidence to support the same assertions. You should evaluate how reliable the responses you did receive are, pursue alternative procedures to gather sufficient appropriate evidence, and document both what was done and how the lack of response affects your conclusions. If necessary, use other sources of evidence (such as subsequent receipts, supporting documents, or recalculations) to corroborate balances or disclosures, and adjust your conclusions or the audit opinion accordingly based on what those procedures show. Ignoring nonresponse would leave important evidence gaps, while assuming no error or canceling the engagement isn’t appropriate responses to incomplete confirmation evidence.