Negative confirmation request
A negative confirmation request asks a confirming party to respond only if it disagrees with the information provided. It supplies less persuasive evidence than a positive request and is used as a sole substantive procedure only in the limited circumstances permitted by the standard. Its use as the sole substantive procedure is restricted to specified conditions, including a low assessed risk, appropriate tested controls, many small homogeneous balances, a very low expected exception rate and no reason to expect recipients will disregard the request.
Worked example
Where permitted and appropriate, the auditor asks customers to respond only if their balances differ from the amounts stated.
Common mistake
Do not interpret silence as equally persuasive as an explicit confirmation or use it without considering the conditions for its use.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |