In Auditing Accounts Receivable, the Negative Form of Confirmation Request

Multiple Choice

In auditing accounts receivable, the negative form of confirmation request most likely would be used when:

A) The total recorded amount of accounts receivable is immaterial to the financial statements taken as a whole.
B) Response rates in prior years to properly designed positive confirmation requests were inadequate.
C) Recipients are likely to return positive confirmation requests without verifying the accuracy of the information.
D) The combined assessed level of inherent risk and control risk relative to accounts receivable is low.