Confirmations that are sent to select customers asking them to review the current balance due the client as shown on the client's statement and return the letters directly to the auditor indicating whether they agree with the indicated balance,are known by which of the following terms?
A)Direct confirmations.
B)Indirect confirmations.
C)Positive confirmations.
D)Negative confirmations.

Question

Quizplus · Accepted Answer

The given scenario mentions that the auditor is asking the customer to confirm whether they agree with the balance indicated on the client's statement. This is a positive confirmation since it is asking for a response indicating agreement with the balance, as opposed to a negative confirmation which asks for a response only if the customer disagrees with the balance. Direct and indirect confirmations refer to the method of sending the confirmation and are not relevant to this scenario.

Confirmations That Are Sent to Select Customers Asking Them to Review