Negative Confirmation of Accounts Receivable Is Less Effective Than Positive

question 5

Multiple Choice

Negative confirmation of accounts receivable is less effective than positive confirmation of accounts receivable because:

• A)a majority of recipients usually lacks 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:

Symmetrical Reciprocity

The concept where two parties engage in a relationship or exchange that is equally beneficial and balanced in terms of giving and receiving.

E-Mail Communications

The exchange of messages and information between individuals or groups through electronic mail systems.

Gender Differences

The distinctions in characteristics, roles, behaviors, and cultural expectations typically associated with one's sex or gender identity.

Personal Issues

Challenges or problems that affect an individual's life on a personal level, including mental health, relationships, and personal growth.