Which of the following is the best argument against the use of negative accounts receivable confirmation requests?
A)The cost-per-response is excessively high.
B)There is no way of knowing if the intended recipients received them.
C)Recipients are likely to feel that in reality the confirmation is a subtle request for payment.
D)The inference drawn from receiving no reply may not be correct.

Question

Quizplus · Accepted Answer

Negative accounts receivable confirmation requests assume that no response is an indication of agreement with the stated account balance. However, the lack of reply may not accurately reflect the recipient's agreement due to various reasons such as oversight, misplacement, or misunderstanding of the request. This makes the inference drawn from no reply potentially incorrect, undermining the reliability of this audit procedure.

Which of the Following Is the Best Argument Against the Use