Multiple Choice
Communication addressed to the debtor requesting confirmation on whether the balance as stated on the communication is correct or incorrect is known as a:
A) negative confirmation.
B) positive confirmation.
C) bank confirmation.
D) management letter.
Correct Answer:

Verified
Correct Answer:
Verified
Q96: The bad debt expense is a residual
Q97: An auditor is concerned that accounts receivable
Q98: The understatement of sales and accounts receivable
Q99: Favourable results from analytical procedures reduce the
Q100: When the client's rights to accounts receivable
Q102: A positive confirmation is more reliable evidence
Q103: Which one of the following would NOT
Q104: What is the most important test of
Q105: Planned detection risk and planned evidence are
Q106: Describe how the auditor tests the rights