What is a negative confirmation?
Negative confirmations are different from positive confirmations as they will not require a response by the recipient. They are only asked to indicate if they disagree with the confirmation amount.
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What is a positive confirmation?
When the audit team sends positive confirmations, Customers of the company will receive a confirmation from the auditor and will be asked to send back a statement with whether or not they agree with the confirmation of the auditor.
What is a blank confirmation?
Blank confirmations require the customer to input the amount that they owe the company (your audit client). Blank forms will often provide a greater amount of assurance; however, they will often result in lower responses as people are less likely to make the effort to fill them out. Blank confirmations provide the highest level of […]
Is the audit team required to send accounts receivable confirmations?
Yes, for most firms, the audit team is required send confirmations to customers to confirm their outstanding balance at year-end. If the audit team determines that sending confirmations is a waste of time, they can perform alternative procedures, but that typically results in extensive documentation. The primary reason is to test the existence & occurrence […]