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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