Negative Confirmations of Accounts Receivable Is Less Effective Than Positive

question 93

Multiple Choice

Negative confirmations of accounts receivable is 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:

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans.

Psychosocial Challenge

Difficulties or issues in an individual's psychological development in and interaction with a social environment.

Initiative Vs. Guilt

A stage in Erik Erikson's theory of psychosocial development where children aged 3 to 6 years begin to assert power and control over their world through directing play and other social interactions.

Identification

The process of recognizing and acknowledging certain properties or characteristics as belonging to or associating with oneself or others.