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The positive (as opposed to the negative) form of receivables confirmation may be preferred when

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The positive (as opposed to the negative) form of receivables confirmation may be preferred when

The positive (as opposed to the negative) form of receivables confirmation may be preferred when

▸ internal control surrounding accounts receivable is considered to be effective.

▸ there is reason to believe that a substantial number of accounts may be in dispute.

▸ a large number of small balances are involved.

▸ the auditor believes that the recipients of the confirmations will give the requests adequate consideration.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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