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:

Resources

Assets, materials, or supplies that are available for use or consumption.

Deviant

Behaviors or actions that diverge from the societal norms and expectations, often carrying a negative connotation.

Social Inequality

describes the unequal distribution of wealth, opportunities, and privileges within a society, often based on factors like race, gender, or socioeconomic status.

Norms

The unwritten rules and expectations that govern the behavior of individuals within a society or group, guiding what is considered normal or acceptable.