You are auditing the financial statements of a new client

Utilize the AICPA Professional Standards(SAS's) to conduct research to answer the following question. Submit a Word document which discusses your findings and include the authoratative literature paragraph(s) citation(s) in support of your recommendation.

You are auditing the financial statements of a new client (first-year audit) that is not required to be registered with the SEC (non-public corporation). The written response rate to your positive confirmation requests of accounts receivable--1st and 2nd requests-- is only 18%, however, you have received several oral responses (telephone calls to you) confirming the details of your positive confirmation requests. The combined written and oral response rate is 60%, and no exceptions were noted by respondents. What are your concerns and what would you do next based on the confirmation responses received thus far?