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

question 107

Multiple Choice

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

• A)the mode of response.
• B)the amount of information included.
• C)the control of the confirmation process by the auditor.
• D)the valuation of the receivable.

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Definitions:

Raw Materials

Initial inputs that are processed during manufacturing to produce finished goods.

Requisitions

Official requests or demands for goods, services, or resources, often used in business or governmental operations.

Direct Labor Cost

The salaries given to employees who are directly engaged in manufacturing products or providing services.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end user.