Negative confirmation of accounts receivable is less effective than positive confirmation of accounts receivable because

Ibrahimhamm

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2022-06-29

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A majority of recipients usually lack the willingness to respond objectively.
Some recipients may report incorrect balances that require extensive follow-up.
The auditor cannot infer that all nonrespondents have verified their account information.
Negative confirmations do not produce evidence that is statistically quantifiable.

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Ibrahimhamm

2022-06-29

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C. The auditor cannot infer that all nonrespondents have verified their account information.

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