Why it is common for auditors to send confirmation requests with zero balances on the clients accounts payable listing but uncommon to follow the same approach in verifying accounts receivable?

This type of approach may be considered more conservative but will be absolutely necessary to make sure that people will be paying for the items that they have ordered on time. Accounts payable means a credit account while the accounts receivable may be considered as a savings account.

Let us say that you have purchased some materials and items through your accounts payable. The time may come when you do not have enough credits to make some purchases anymore. It is only natural that you will be notified so that you will have enough credits again. For the accounts receivable, it will be different because you will not have any debt when you do not have any money in your own account.

Unless evidence is discovered which indicates that a different approach should be followed, auditors traditionally follow a conservative approach in selecting vendors for accounts payable confirmations and customers for accounts receivable confirmations. the auditor assumes that the client is more likely to understate accounts payable, and therefore concentrates on the vendors with whom the client deals actively, especially if that vendors balance appears to be lower than normal on the clients accounts payable listing at the confirmation date. in verifying accounts receivable, the auditor assumes that the client is more likely to overstate account balances; and for that reason concentrates more on the larger dollar balances and is not as concerned with zero balances.