Negative confirmation of accounts receivable is less effective than posi- tive confirmation of accounts receivable because a.

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Negative confirmation of accounts receivable is less effective than posi- tive confirmation of accounts receivable because

a. A majority of recipients usually lack the willingness to respond objectively.

b. Some recipients may report incorrect balances that require extensive follow-up.

c. The auditor cannot infer that all nonrespondents have verified their account information.

d. Negative confirmations do not produce evidence that is statistically quantifiable.

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Auditing And Assurance Services

ISBN: 9780073527086

7th Edition

Authors: William MessierSteven Glover

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Question Posted: May 06, 2024 07:00 AM

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Negative confirmation of accounts receivable is less effective than posi- tive confirmation of accounts receivable because a.

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