• The accounts receivable are immaterial to the financial statements
• The use of confirmations would not be effective as an audit procedure
• The auditor's assessment of inherent risk and control risk is low, and evidence gathered from other substantive tests is sufficient to reduce audit risk to an acceptably low level

• The type of confirmation request
• Prior experience with the client or similar engagements
• The intended respondent

requests that customers indicate whether they agree with the amount due to the client stated in the confirmation – used when an account’s individual balances are large or if errors are anticipated

customers respond only when they disagree with the amount due to the client – used when there are many accounts with small balances, control risk is assessed to be low, and the auditor believes that the customers will devote adequate attention to the confirmation

• Comparison of gross profit percentage by product line with previous years' and industry data
• Comparison of reported revenue to budgeted revenue
• Analysis of the ratio of sales in the last month or week to total sales for the quarter or year
• Comparison of revenues recorded daily for periods shortly before and after the end of the audit period for unusual fluctuations such as an increase just before and a decrease just after the end of the period
• Comparison of details of units shipped with revenues and production records and consideration of whether revenues are reasonable compared to levels of production and average sales price
• Comparison of the number of weeks of inventory in distribution channels with prior periods for unusual increases that may indicate channel stuffing
• Comparison of percentages and trends of sales into the distributor channel with industry and competitors' sales trends, if known

• Comparison of receivables turnover and days outstanding in accounts receivable to previous years' and/or industry data
• Comparison of aging categories on aged trial balance of accounts receivable to previous years
• Comparison of bad-debt expense as a percentage of revenue to previous years' and/or industry data
• Comparison of the allowance for uncollectible accounts as a percentage of accounts receivable or credit sales to previous years' and/or industry data
• Examination of large customer accounts individually and comparison to previous years