1. A positive confirmation most likely would be used when:

• A. The combined assessed level of inherent risk and control risk relative to accounts receivable is high.
• B. The total recorded amount of accounts receivable is immaterial to the financial statements taken as a whole.
• C. Response rates in prior years to positive confirmation requests were low.
• D. Recipients are likely to return positive confirmation requests without verifying the accuracy of the information.

1. Substantiating which assertion can help minimize the likelihood of understated payables?

• A. Existence
• B. Presentation and disclosure
• C. Completeness.
• D. Rights