Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Exercise 12

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 evidence that is statistically quantifiable.