Testing Methods. Please respond to the to minimize the risk of material misstatements,, auditors seek third party verification of account balances by mailing customers their statements. Discuss the advantages of positive and negative confirmation, and ascertain whether or not email and oral confirmation are acceptable to increase customer response rates. Support your position. Discuss the difference between substantive test of transaction and substantive test of balances, and identify at least two situations when an auditor should test account balances. Support your rational with related examples of such circumstances.