Which of the following statements is invalid relating to confirmation of accounts receivable? a. A negative form of confirmation is preferable to use when individual account balances of customers are relatively small b. A positive confirmation provides more reliable evidence than the negative confirmation because the auditor can perform follow-up procedures if no response is received from the debtor c. An auditor must consider using the negative form of confirmation when there is reason to believe that there may be a substantial number of accounts in dispute or with inaccuracies or irregularities d. In negative confirmation, failure to reply must be regarded as a correct response, even though the debtor may have ignored the confirmation request e. None of the above
Choose the one correct answer.
Which of the following statements is invalid relating to confirmation of
a. A negative form of confirmation is preferable to use when individual account balances of customers are relatively small
b. A positive confirmation provides more reliable evidence than the negative confirmation because the auditor can perform follow-up procedures if no response is received from the debtor
c. An auditor must consider using the negative form of confirmation when there is reason to believe that there may be a substantial number of accounts in dispute or with inaccuracies or irregularities
d. In negative confirmation, failure to reply must be regarded as a correct response, even though the debtor may have ignored the confirmation request
e. None of the above
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