The type of confirmation is a major factor affecting sample size when confirming accounts receivable, with negative confirmations normally requiring a larger sample than positive confirmations.

Question

Quizplus · Accepted Answer

This statement is true. Negative confirmations are less reliable than positive confirmations because non-responses cannot be assumed to be agreement with the account balance, so a larger sample is needed to increase the reliability of the result. Positive confirmations, on the other hand, are assumed to be agreement with the account balance unless the respondent indicates otherwise, so a smaller sample can be used.

The Type of Confirmation Is a Major Factor Affecting Sample