Auditors May Use Positive And/or Negative Forms of Confirmation Requests

question 51

Multiple Choice

Auditors may use positive and/or negative forms of confirmation requests for accounts receivable.Of the following,which combination is it most likely that the auditors will use?

• A)The positive form for small balances,and the negative form for large balances.
• B)The positive form used for large balances and the negative form for the small balances.
• C)The positive form used for trade receivables and the negative form for other receivables.
• D)The positive form when controls related to receivables are satisfactory,and the negative form when controls related to receivables are unsatisfactory.