When negative external confirmation should be used?
If the question is about corporate communications:
1. Contradict untrue charges or claims against the company.
2. Point out things that are wrong and need correction.
If this is about an audit confirmation, a negative confirmation means that no response is taken as a "no problem". Such a confirmation might say,"If this account balance is correct, no action in needed. If it is in error, please report..." This technique may be used to test balances held by or due to external parties.
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