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Required: Explain the follow up steps you would want to take to satisfactorily clear each of the five comments from customers below. Think about whether the comment indicates a concern or not, what fraudulent activity could be happening or what errors could have occurred, what additional follow-up information would you want to seek out to gain comfort on the situation, etc.

You have been assigned to the first audit of the Chicago Company for the year ending March 31, 2017. Accounts receivable were confirmed on Dec. 31, 2016. and at that date the receivables consisted of approximately 200 accounts with balances totaling $956,750. Seventy-five of these accounts with balances totaling $650,725. were selected for confirmation. All but 20 of the confirmation requests have been returned; 36 were signed without comments, 14 had minor differences that have been cleared satisfactorily, and 5 confirmations had the following comments:
1: The balance of $7,750 was paid on Jan 5, 2017.
2: We are sorry, but we can’t answer your request for confirmation of our account as the system we are using does not provide us the necessary information.
3: We do not owe you anything at Dec.31, 2016, as the goods, represented by your invoice dated Dec.30,2016, number 25050, in the amount of $11,550 were received on Jan.5,2017, on FOB destination terms.
4: Amount okay, as the goods have been shipped to us on consignment, we will remit the payment upon selling the goods.
5: The $10,000, representing a deposit under a lease, will be applied against the rent due to us during 2018, the last year of the lease.

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