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March 31, 2022

State when an auditor would be inclined to use negative confirmation for accounts receivable

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Two type of accounts receivable confirmation are “positive” and “negative”. Explain what is meant by each type. State when an auditor would be inclined to use negative confirmation for accounts receivable. Explain how the existence assertion is involved in the decision to use POSITIVE rather than NEGATIVE accounts receivable confirmation. When would “alternative procedures” be performed? Discuss an ONE alternative procedure involving accounts receivable.

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