Negative Confirmations of Accounts Receivable Are Less Effective Than Positive

question 111

Multiple Choice

Negative confirmations of accounts receivable are less effective than positive confirmations of accounts receivable because

• A)a majority of recipients usually lack the willingness to respond objectively.
• B)some recipients may report incorrect balances that require extensive follow-up.
• C)the auditor cannot infer that all nonrespondents have verified their account information.
• D)negative confirmations do not produce evidential matter that is statistically quantifiable.

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Definitions:

Sleep Deprivation

A condition resulting from inadequate quantity or quality of sleep, including voluntary or involuntary sleeplessness and circadian rhythm sleep disorders.

Body Fat

The portion of the human body made up of fat cells, significant for energy storage and insulation.

Cortisol

A steroid hormone produced by the adrenal gland, often released in response to stress and a component of the body's fight or flight response.

REM Sleep

A stage of sleep characterized by rapid eye movements, more dreaming, and bodily movement.