Final answer:
If customers do not return confirmations or discrepancies are identified, an auditor should perform alternative procedures like reviewing subsequent cash receipts. For sellers dealing with buyers with imperfect information, offering warranties, trial periods, or customer testimonials can reassure buyers and establish trust.
Step-by-step explanation:
When customers do not return confirmations for accounts receivable (AR) aging or the information varies from the client's records, an auditor should undertake alternative procedures to verify the balances. These procedures might include reviewing subsequent cash receipts, examining shipping documentation,
or checking sales after the year-end. If discrepancies are identified between the confirmation received and the client's records, the auditor must investigate and determine whether they are due to errors, fraud, or timing differences.
In responding to the question on how a seller could reassure a buyer facing imperfect information when purchasing goods, a seller might provide warranties, offer a trial period, or share customer testimonials. These actions can help build trust and confidence in the quality of the goods and the credibility of the seller.