The primary difference between positive and negative confirmations used in the audit of accounts receivable is which of the following?
A)The mode of response.
B)The amount of information included.
C)The control of the confirmation process by the auditor.
D)The method in which accounts are selected for confirmation.

Question

Quizplus · Accepted Answer

The primary difference between positive and negative confirmations is the mode of response. Positive confirmations require the recipient to respond directly to the auditor, indicating whether they agree or disagree with the information provided. In contrast, negative confirmations only require a response from the recipient if they disagree with the information provided, thus providing a passive mode of response. The other options, such as the amount of information included, the control of the process, and the method of selecting accounts, are secondary differences between the two types of confirmations.

The Primary Difference Between Positive and Negative Confirmations Used in the Audit