The types of information respondents will be able to confirm should also be considered. For example, some respondents can confirm account balances, but others can more readily confirm single transactions. Also, some respondents may not be able to confirm a balance, but can confirm whether payments are current, the periodic payment, and the terms of the agreement. The auditor also considers whether to use positive or negative confirmations. Positive forms typically request the recipient to indicate whether the information provided is correct.
Negative confirmations request a response only if the information on the form is inaccurate.
Positive confirmations are usually a reliable source of evidence. To try to elicit a response, the auditor should send a second or even a third request. Another problem with positive confirmations is that respondents may simply sign the form and return it without verifying the accuracy of the information. To address this problem, the auditor should consider using the blank form. Because the blank form requires the respondent to supply the requested information, it may provide better assurance than the positive form.