When the client has a large number of relatively small accounts receivable and the assessed level of control risk for receivables and related revenue transactions is high,the auditor is more likely to use negative confirmations.

Question

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When the assessed level of control risk is high, auditors are more likely to use positive confirmations to directly verify the existence and accuracy of accounts receivable, as negative confirmations provide less persuasive evidence. Positive confirmations require a response regardless of whether the debtor agrees with the stated amount, making them more reliable in situations with high control risk.

When the Client Has a Large Number of Relatively Small