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 lack 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 audit evidence that is statistically quantifiable.