External confirmation is a useful method of obtaining audit evidence in relation to trade receivables. Discussion a. In relation to external confirmation of trade receivables: i Explain the difference between a positive and a negative confirmation; ii Explain the two different types of positive confirmation and the advantages and disadvantages of each; iii List the reconciling items highlighted by external confirmation of trade receivables. b. Describe the principal risks associated with financial statement assertions relating to trade receivables. External confirmation is a useful method of obtaining audit evidence in relation to trade receivables. Discussion a. In relation to external confirmation of trade receivables: i Explain the difference between a positive and a negative confirmation; ii Explain the two different types of positive confirmation and the advantages and disadvantages of each; iii List the reconciling items highlighted by external confirmation of trade receivables. b. Describe the principal risks associated with financial statement assertions relating to trade receivables