Which of the following is not true concerning the confirmation of securities held by outsiders for safekeeping?
A) Confirmations should be requested as of the date other securities are counted.
B) The auditor must control the mailings.
C) The auditor should receive responses directly from the custodian.
D) The data confirmed are the same as the data that should be noted when the auditor is able to inspect the securities.
E) Either positive or negative confirmations can be used.

Question

Quizplus · Accepted Answer

Positive confirmations are typically used for verifying securities held by outsiders, as they require a response, ensuring the accuracy of the information. Negative confirmations, which do not require a response unless there is a discrepancy, are not suitable for this purpose.

Which of the Following Is Not True Concerning the Confirmation