ICAEW ARF · Chapter 8 · Question 3 of 12
Which of the following describes a positive confirmation request for trade receivables?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The customer is asked to reply in all cases, either agreeing the balance or providing details of any differences
Explanation
A positive confirmation asks the customer to respond whether or not they agree, which provides more reliable evidence because a reply is expected. A negative confirmation asks for a reply only if the customer disagrees, so a non-reply provides limited evidence. Oral confirmations are less reliable than written responses received directly.
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