CAF-8 · Chapter 9 · Question 3 of 10
When sending external confirmations to trade receivables (debtors), what is the primary purpose of a 'Positive Confirmation'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To ask the debtor to respond in all cases, confirming whether they agree or disagree with the balance.
Explanation
A positive confirmation request provides more reliable evidence than a negative one because the auditor expects a response regardless of whether the debtor agrees with the figure.
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