Problem

The financial records of the Movitz Company show that Mr. Dennis owes $4,100 on an account...

The financial records of the Movitz Company show that Mr. Dennis owes $4,100 on an account receivable. An independent audit is being carried out and the auditors send a positive confirmation to Mr. Dennis. What is the most likely reason as to why a positive confirmation rather than a negative confirmation was used here?

A. Control risk was particularly low for accounts receivable.

B. Inherent risk was particularly high for accounts receivable.

C. Mr. Dennis’s account was not yet due.

D. Mr. Dennis’s account was not with a related party.

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