A)Describe the Differences Between Positive and Negative Confirmations

question 61

Essay

A)Describe the differences between positive and negative confirmations.Which type is more reliable?B)Discuss the advantages and disadvantages of using negative accounts receivable confirmations rather than positive confirmations.C)Discuss the circumstances in which it is acceptable to use negative confirmation requests.D)The auditor's decision regarding the type of accounts receivable confirmation to use involves a continuum,starting with using no confirmations in some circumstances,to using only negatives,to using both positives and negatives,to using only positives.Discuss the primary factors affecting this decision.

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Definitions:

UN Charter

A foundational treaty that established the United Nations in 1945 to promote international cooperation and to achieve peace and security.

Jacobo Arbenz Guzmán

The 25th President of Guatemala from 1951 until 1954, known for his progressive land reform policies, which eventually led to his overthrow in a coup orchestrated by the CIA.

Suez Canal

A man-made waterway in Egypt, connecting the Mediterranean Sea to the Red Sea, facilitating international maritime trade.

Mass Consumption

Mass consumption refers to the widespread purchase and use of goods and services by a large portion of the population, characterized by high levels of consumer spending and the availability of a wide range of products.