For which of the following accounts receivable customer populations would the use of negative confirmations be most appropriate?
A)A retail truck and trailer sales company with high inherent risk and moderate control risk over the revenue cycle.
B)A utility company with control risk over the revenue cycle assessed high.
C)A mortgage banking company with excellent control over the purchasing cycle.
D)A cable company with control risk over the revenue cycle assessed low.

Question

Quizplus · Accepted Answer

The use of negative confirmations is most appropriate for populations with low control risk over the revenue cycle. Therefore, the cable company with control risk over the revenue cycle assessed low is the best choice for the use of negative confirmations. The other options have moderate to high control risk, making the use of positive confirmations more appropriate.

For Which of the Following Accounts Receivable Customer Populations Would