ACCA Advanced Audit and Assurance (AAA) Practice Exam

What is a positive confirmation request?

1. A request that requires a response only if there's a disagreement

2. A request for the confirming party to agree or disagree with information

3. A request that does not require any action

4. A request due to absence of information

The correct answer is: A request for the confirming party to agree or disagree with information

A positive confirmation request is specifically designed to obtain a response from the confirming party, and it seeks to verify information by asking them to either agree with the stated information or to indicate any discrepancies they may identify. This type of confirmation is useful in auditing because it provides direct evidence from an external source regarding the accuracy of account balances or transaction details reported by the client. Unlike a negative confirmation request, which only requires a response if there is a disagreement, the positive confirmation demands that the recipient reply regardless of whether they agree or disagree, thus ensuring that the auditor receives an affirmative response that can either confirm or question the reported data. This method enhances the reliability of audit evidence, as it actively engages the confirming party in the process of verification.