4183. Selection of accounts for positive confirmation

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    1. For accounts in subsection 4182(2) the Dealer Member’s auditor:

      1. must send a positive confirmation request,

      2. has the option to send a second positive confirmation request where a reply to the initial request sent in clause 4183(1)(i) has not been received, and

      3. must use appropriate alternative verification procedures, to obtain relevant and reliable audit evidence, where the second positive confirmation request in clause 4183(1)(ii) is not sent or where a reply to second positive confirmation request has not been received.

    2. For accounts in clauses 4182(2)(iv), 4182(2)(vi), and 4182(2)(vii), the Dealer Member's auditor must:
      1. select specific accounts for positive confirmation based on:
        1. account size (all accounts with net equity exceeding a certain dollar value, based on the level of materiality), and
        2. other characteristics such as accounts in dispute, accounts that are significantly under margined, nominee accounts, and accounts that would require significant margin during the year or as at the fiscal year‑end without an effective guarantee,
      2. select a sufficiently representative sample from all other accounts to provide reasonable assurance that any material error will be detected, and
      3. send out negative confirmation requests for all remaining accounts that have not been selected for positive confirmation. The negative confirmation request must include instructions that any differences be reported directly to the auditor.

    There is no history log for this rule.

    There is no history log for this rule.