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

question 6

Multiple Choice

Auditors may use positive and/or negative forms of confirmation requests for accounts receivable. Which of the following statements is true regarding the auditor's use of confirmations?

• A)The positive confirmation form must always be used to confirm all balances regardless of size.
• B)A combination of the two confirmation types can be used, with the positive form used for large balances and the negative form used for small balances.
• C)A combination of the two confirmation types can be used, with the positive form used for trade receivables and the negative form for other receivables.
• D)The positive confirmation form should be used when controls related to receivables are satisfactory and the negative confirmation form should be used when controls related to receivables are unsatisfactory.

---

Definitions:

Sex Partners

Sex partners refer to individuals who engage in sexual activity with one another.

Median Number

The middle value in a set of numbers, arranged in ascending or descending order.

Lifetime

The period during which an organism exists, from birth to death, or the duration of an object or concept's existence.

Homosexual Behavior

Actions that involve sexual activity between individuals of the same sex.