Which of the following is the principle "weakness" of using negative confirmations for your tests of details of balances for accounts receivable?
A)They can only be used for large balance accounts.
B)They cannot not 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 if a customer does not dispute the balance, then it must be correct. However, conclusions drawn from receiving no reply may not always be correct, as there is a possibility that the confirmation was never received, overlooked, or discarded. Therefore, the principle weakness of using negative confirmations is that the conclusions drawn from them may not be accurate. Options A, B, and D are not accurate reasons for the weakness of negative confirmations.

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