The Primary Difference Between Positive and Negative Confirmations Used in the Audit

question 93

Multiple Choice

The primary difference between positive and negative confirmations used in the audit of accounts receivable is which of the following?

• A)The mode of response.
• B)The amount of information included.
• C)The control of the confirmation process by the auditor.
• D)The method in which accounts are selected for confirmation.

---

Definitions:

Economic Value

The measure of the benefit provided by a good or service to an economic agent, often represented in terms of willingness to pay for it.

Service Hours

A measure of the amount of time spent providing services to customers, often used to allocate service department costs to producing departments.

Net Operating Income

An evaluation of a business's core operating income, omitting the effects of interest and tax expenses.

Price Reduction

A decrease in the selling price of a product or service, often to stimulate demand or respond to competition.