The process of obtaining external confirmation.

ISA 505 “External Confirmation” deals with the auditor’s use of external confirmation procedures to obtain audit evidence.
ISA 505 defined external confirmation as audit evidence obtained as a direct written response to the auditor from a third party (the confirming party). In paper form or by electronic or other media.

Process of obtaining external conformation:

  • Determining the information to be confirmed or requested: it may be with respect to
  1. Account balance & their elements.
  2. Terms of agreements/ contracts/ transactions.
  •  Selecting the appropriate confirming party
  • Designing the confirmation requests: It also includes determining that requests are properly addressed, and contain return information for responses to be sent directly to the auditor.
  • Sending the requests, including follow-up requests when applicable, to the confirming part.

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