In Auditing Accounts Receivable, the Negative Form of Confirmation Request

question 923

Multiple Choice

In auditing accounts receivable, the negative form of confirmation request most likely would be used when:

• A) The total recorded amount of accounts receivable is immaterial to the financial statements taken as a whole.
• B) Response rates in prior years to properly designed positive confirmation requests were inadequate.
• C) Recipients are likely to return positive confirmation requests without verifying the accuracy of the information.
• D) The combined assessed level of inherent risk and control risk relative to accounts receivable is low.

---

Definitions:

Physiological Explanation

An explanation that relates to how the bodily processes and systems of an organism function, often used to understand health and disease states.

Song Systems

Neural circuits and pathways in the brain of birds that are responsible for the learning, production, and perception of songs.

Brain Operation

The functional processes and activities carried out by the brain, encompassing cognitive, emotional, and motor functions.

Population Differences

Variations observed between groups of the same species, often driven by genetic, environmental, or social factors.