Final answer:
The audit procedure that involves sending a written request to the entity's customers requesting that they report the amount owed to the entity is called Confirmation.
Step-by-step explanation:
The audit procedure that involves sending a written request to the entity's customers requesting that they report the amount owed to the entity is called Confirmation.
Confirmation is a commonly used audit procedure where the auditor directly contacts third parties, such as customers or suppliers, to obtain independent verification of the amounts reported in the entity's financial statements. In this case, by sending written requests to the entity's customers, the auditor is seeking confirmation of the amounts owed to the entity.
This procedure is important for verifying the accuracy and existence of receivables and helps to ensure that the entity's financial statements are reliable and trustworthy.