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.

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Definitions:

Money Income

The total earning or revenue received by an individual or household, including wages, salaries, benefits, and other monetary sources.

Indifference Map

A graphical representation that shows different combinations of goods between which a consumer is indifferent.

Budget Lines

A visual representation showcasing every potential pairing of two products that a consumer is able to purchase, considering their budget and the costs of these items.

Utility

In economics, utility refers to the total satisfaction received from consuming a good or service.