The Positive (As Opposed to the Negative) Form of Receivables

Multiple Choice

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

A) internal control surrounding accounts receivable is considered to be effective.
B) there is reason to believe that a substantial number of accounts may be in dispute.
C) a large number of small balances are involved.
D) the auditor believes that the recipients of the confirmations will give the requests adequate consideration.