The negative request form of accounts receivable confirmation is useful particularly when the: Assessed Level of Risk of Material Misstatement Relating to Receivables Is Number of Small Balances Is Proper Consideration by the Recipient Is A. Low Many Likely B. Low Few Unlikely C. High Few Likely D. High Many Likely

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Business

Osborne

27 January, 08:52

The negative request form of accounts receivable confirmation is useful particularly when the: Assessed Level of Risk of Material Misstatement Relating to Receivables Is Number of Small Balances Is Proper Consideration by the Recipient Is A. Low Many Likely B. Low Few Unlikely C. High Few Likely D. High Many Likely

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Madalyn Sweeney · Answer 1

The negative request form of accounts receivable confirmation is useful particularly when the:

Assessed Level of Risk of Material Misstatement Relating to Receivables is Low

Number of Small Balances Is Many

Proper Consideration by the Recipient Is Likely.

Explanation:

A document that is prepared by an auditor for the customers of the company who acts as a client to him refers to the negative confirmation. This document requires a response for m the customers to which the document is given, on a condition that if there is a presence of discrepancies between the records of them and the financial records of the client company that is being given by the auditor.

This type of document is very useful during the conditions that when the level of the risk associated with the Material Misstatement Relating to Receivables lower, When there are many number of small balances exists and there is a likely Consideration by the Recipient.