Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

When receiving a confirmation via the client’s fax machine, what should an auditor do?

1. Immediately discard the confirmation

2. Accept it without further verification

3. Verify the source and content via telephone

4. Send another confirmation request

The correct answer is: Verify the source and content via telephone

The correct response involves verifying the source and content via telephone when receiving a confirmation through the client’s fax machine. This approach reinforces the auditor’s responsibility to ensure the authenticity and reliability of evidence collected during the audit process. When confirmations are received via fax, there is a risk that the document could be altered or fabricated. Verifying the source involves checking that the confirmation indeed comes from a legitimate and appropriate party, which mitigates the risk of potential fraud or misstatement. Additionally, confirming the content by directly contacting the source ensures that the information provided on the fax aligns with the actual records of that source. This step enhances the credibility of the confirmation obtained and supports the overall integrity of the audit evidence. While the other options suggest either disregarding the confirmation, accepting it as accurate without corroboration, or sending another request, they lack the necessary safeguards to ensure that the information is reliable and valid. Reliance on a single method of confirmation without cross-verification does not align with best auditing practices, which emphasize the need for sufficient evidence to support conclusions reached in the audit.