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Hi
My Q are related to direcr/indirect and positive/negative confirmations
1.what’s the meaning of direct and indirect confirmation?Relationship and differences?2.what’s the meaning of positive and negative confirmation?Relationship and differences?
3.Does positive confirmation belong to direct confirmation?
4.Does negative confirmation belong to indirect confirmation?
THX:)
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how childish question !! r u a CAT candidate?? if no then i’m confused how did u clear uptil f8 ????? lolz
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audit evidence obtained indirectly or by inference is indirect confirmation its less reliable than the opposite one(obtained directly by the auditor)
The negative form of confirmation asks the client’s customer to respond only if the customer disagrees with the balance determined by the client.
Positive ask for response in any case whether client agrees or disagreesDirect evidence – collected by the auditor e.g. a substantive procedure carried out by the audit junior
Indirect evidence – evidence collected by someone but the auditor – e.g. internal audit fuction, experts etc…
Direct evidence is more relaible and hence “appropriate”
Remember the auditor has to collect “sufficient appropriate evidence”
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