Confirmation of Accounts receivable AICPA Requirements 1. Accounts receivable are immaterial 2. The auditor considers confirmations ineffective evidence because response rates will likely be inadequate or unreliable 3. The combined level of inherent risk and control risk is low and other substantive evidence can be accumulated to provide sufficient evidence. Arens. Loebbecke; Auditing, 8/E @2000 Prentice hall. IncArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Confirmation of Accounts Receivable AICPA Requirements 1. Accounts receivable are immaterial. 2. The auditor considers confirmations ineffective evidence because response rates will likely be inadequate or unreliable. 3. The combined level of inherent risk and control risk is low and other substantive evidence can be accumulated to provide sufficient evidence