ACCA Audit and Assurance (F8) Practice Exam

Negative confirmation requests primarily ask the customer to:

1. Confirm the entire account balance

2. Reply only if the amount disputed

3. Detail any discrepancies in records

4. Provide historical payment data

The correct answer is: Reply only if the amount disputed

Negative confirmation requests primarily ask the customer to reply only if they dispute the amount stated. This method serves as a way for auditors to obtain verification of balances or transactions in a more efficient manner, particularly when the expected response rate is understood to be high or when the balances are considered low-risk. In this context, the negative confirmation approach relies on the premise that if a customer does not respond, it is assumed they agree with the information provided. This contrasts with positive confirmations, where a reply is requested regardless of whether there are any discrepancies. Consequently, while other options may be relevant to other types of confirmations, they do not align with the specific function of negative confirmations. The request for a customer to confirm an entire account balance or to detail discrepancies does not accurately represent the nature of negative confirmations. Additionally, asking for historical payment data does not fit the purpose of requesting confirmation of a current account balance.