How to distinguish between positive or negative confirmation


+ve confirmation : confirming party respond directly to auditor whether it agrees/disagrees with info
-ve confirmation: confirming party respond directly to auditor ONLY if it disagrees with info
So if a party disagrees with info.. How to distinguish if its +ve or -ve as disagreement of info falls in both cases..

2 answers

Ravi Staff March 1, 2015

hello amey, whether confirmation request is positive or negative is decided by auditor while designing confirmation request in SA 505, so it is decided before sending confirmation request not when we receive response of confirmation. 
so it is decision of auditor whether to go for positive or negative. if read wordings of confirmation request we can determine it. I hope concern is addressed if not please ask again, thanks


 thank you sir


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