Negative confirmation of accounts receivable is less effective than positive confirmation because: 1. Some recipients may report incorrect balances. 2. There is no way of knowing whether a non-response indicates agreement with the balance or a failure by the customer to return the form. 3. The amount of the receivable may be immaterial. 4. Only blank confirmations are permitted under GAAS for material accounts receivable balances. O 1 O 2 3 O4