A is corrent because the negative form is useful when the assessed level of the risk of material misstatement is low, a large number of small balances are involved, and when the auditor has no reason to believe the persons receiving the requests are unlikely to give them consideration.
B is incorrect because the negative form is used when there are many small accounts involved and the recipient is likely to consider the confirmation request.
C is incorrect because the assessed level of the risk of material misstatement is low and, generally, there should be many accounts with small balances.
D is incorrect because the assessed level of the risk of material misstatement must be low.
