The negative request form of accounts receivable confirmation is useful particularly when the:

Question

Quizplus · Accepted Answer

Choice "A" is correct. The negative request form of accounts receivable confirmation is useful particularly when: -the assessed level of control risk relating to receivables is low (if control risk is high, then positive confirmation requests would probably be sent), -there are many small balances (which would make it difficult to keep the number of positive confirmations to a reasonably low level), and -consideration of the confirmation by the recipient is likely (since the auditor is relying on the customers' consideration as the sole basis of support for the confirmation). Choices "B", "C", and "D" are incorrect, based on the above Explanation.

The Negative Request Form of Accounts Receivable Confirmation Is Useful