Which of the following is the principle "weakness" of using negative confirmations for the tests of details of balances for accounts receivable?
A) They can only be used for large balance accounts.
B) They cannot be used when account balances "bunch" around a mean value.
C) Conclusions drawn from receiving no reply may not be correct.
D) Response rates are generally too low to draw any conclusions.

Question

Quizplus · Accepted Answer

Negative confirmations rely on the assumption that no response indicates agreement with the account balance, but this may not be the case. Customers may not respond for various reasons, such as misplaced or ignored requests, leading to incorrect conclusions.

Which of the Following Is the Principle "Weakness" of Using