Describe the differences between positive and negative confirmations. Which type is generally viewed as more reliable?

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Describe the differences between positive and negative confirmations. Which type is generally viewed as more reliable?

Answer:

A positive confirmation requests the recipient to respond regardless of whether the balance as stated on the confirmation is correct or incorrect. In contrast, a negative confirmation requests the recipient to respond only if the balance as stated on the confirmation is incorrect. Positive confirmations are more reliable because the auditor can perform follow-up procedures if a response is not received from the customer.

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