The negative form of accounts receivable confirmation request is useful except when:
A) a large number of small balances are involved.
B) the internal control structure surrounding accounts receivable is considered to be effective.
C) individual account balances are relatively large and few in number.
D) the auditor has reason to believe the persons receiving the requests are likely to give them consideration.

Question

Quizplus · Accepted Answer

Negative confirmations are less effective when individual account balances are large and few in number, as they rely on the absence of a response to indicate correctness, which may not be reliable in such cases.

The Negative Form of Accounts Receivable Confirmation Request Is Useful