Auditors may use positive and/or negative forms of confirmation requests for accounts receivable. An auditor most likely will use
a. The positive form to confirm all balances regardless of size.
b. A combination of the two forms, with the positive form used for large balances and the negative form for the small balances.
c. A combination of the two forms, with 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.
Answer: B
CPA Exam
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