Confirmations that are sent to customers asking them to review the current balance due the client and return the letters directly to the auditor indicating whether they agree with the indicated balance,are known as
A)direct confirmations.
B)indirect confirmations.
C)positive confirmations.
D)negative confirmations.

Question

Quizplus · Accepted Answer

Positive confirmations involve directly asking the customer to confirm the accuracy of the account balance. This is in contrast to indirect confirmations which rely on the customer's lack of response as an indication of agreement with the balance, or negative confirmations which ask the customer to only respond if they disagree with the balance. Direct confirmations may also be used, but these involve the auditor directly contacting the customer rather than sending a letter for the customer to respond to. Therefore, the best choice is C) positive confirmations.

Confirmations That Are Sent to Customers Asking Them to Review