Responses to negative confirmations, particularly if they are widespread in a large population, may indicate a potential problem. Since the negative confirmations approach does not prove that the intended recipients actually received and reviewed the confirmation letters, evidence of individual misstatements provided by returned responses cannot be projected to the entire population. In other words, responses to negative confirmations cannot be used as a basis for determining the total dollar amount of the misstatement in the account. Such evidence can be used, however, to reinforce the auditor’s prior expectation that the account balance may be materially misstated and that additional testing of details is needed to determine the nature and
amount of the misstatement.