Which of the following is the principle "weakness" of using negative confirmations for the tests of details of balances for accounts receivable?
A)They can only be used for large balance accounts.
B)They cannot not be used when account balances "bunch" around a mean value.
C)Conclusions drawn from receiving no reply may not be correct.
D)Response rates are generally too low to draw any conclusions.

Question

Quizplus · Accepted Answer

Conclusions drawn from receiving no reply may not be correct. This is because there could be various reasons why a customer did not respond to a negative confirmation, such as the communication getting lost or the customer not understanding the request. Therefore, not receiving a response does not necessarily indicate that the account balance is accurate.

Which of the Following Is the Principle "Weakness" of Using