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Part 6 Accounts Receivable Confirmations (25 points)

Two types of accounts receivable confirmations are positive and negative. Explain what is meant by each type. State when an auditor would be inclined to use negative confirmations for accounts receivable. Explain how the Existence assertion is involved in the decision to use POSITIVE rather than NEGATIVE accounts receivable confirmations. When would alternative procedures be performed? DISCUSS an [ONE] alternative procedure involving accounts receivable.