Final answer:
The correct statement about the use of negative confirmation requests is that unreturned requests rarely provide significant explicit evidence. This type of request is not a reliable source of evidence and may require alternative procedures if there is no response.
Step-by-step explanation:
Among the statements provided concerning the use of negative confirmation requests, a. Unreturned negative confirmation requests rarely provide significant explicit evidence is correct. Negative confirmation requests are typically used by auditors when the risk of material misstatement is low, and the recipients of these requests are asked to respond only if they disagree with the information stated. Since an unreturned negative confirmation does not necessarily indicate agreement, it cannot be relied upon as explicit evidence. It is also important to note that such requests are not necessarily effective when detection risk is low or when understatements of account balances are suspected. If unreturned, they might indicate that alternative procedures are necessary to obtain sufficient appropriate audit evidence.
The concept of confirmation bias, identified by Peter Wason, relates to the tendency of people to seek information that confirms their preconceptions, which is why it is crucial for auditors to be aware of this bias and strive for objectivity by also considering information that could potentially disprove their hypotheses - a practice known as falsification.