27 The advantage of using the negative confirmations is that

27 The advantage of using the negative confirmations is that a. larger sample sizes can be used without increasing the costs above what would have been required for positive confirmations. b. customer\'s silence proves that the balance is correct. c. less follow-up confirmation requests are required than for positive confirmations. d. the auditor\'s tolerable misstatement (TM) for accounts receivable balances is low.

Solution

Correct answer is a. larger sample sizes can be used without increasing the costs above what would have been required for positive confirmations

Unlike Positive confirmations, Negative confirmations does not includes second requests and no followup of non responses which results in cost saving and makes it less expensive than Positive confimation.