Negative Confirmation of Accounts Receivable Is Less Effective Than Positive

Multiple Choice

Negative confirmation of accounts receivable is less effective than positive confirmation of accounts receivable because:

A) a majority of recipients usually lacks the willingness to respond objectively.
B) some recipients may report incorrect balances that require extensive follow up.
C) the auditor cannot infer that all nonrespondents have verified their account information.
D) negative confirmations do not produce evidential matter that is statistically quantifiable.