External Confirmation - Documents to keep in record

 

Under auditing standards, external confirmations are a commonly used procedure to obtain audit evidence directly from third parties. When conducting an audit, the following documents shall be kept in relation to external confirmations

Here are the main documents:

1. Confirmation Requests: These are the letters or messages auditors send to third parties, asking them to confirm specific information or balances. 

2. Confirmation Responses: These are the written responses auditors receive from third parties. These responses confirm or dispute the information provided by the company being audited, or they may provide additional details. 

3. Follow-up Communications: Sometimes, auditors need to ask third parties for more information or clarification. These additional conversations or messages should be saved. 

4. Confirmation Tracking: Auditors keep a record of the confirmation requests they send, including dates, expected response dates, and actual response dates. 

5. Reconciliation or Analysis: Auditors may need to compare the confirmation responses with the company's records or other evidence. They document these comparisons.

6. Exceptions or Disputes: If there are any differences or disagreements between the confirmation responses and the company's records, auditors document them and investigate further.

7. Management Representations: Auditors may ask the company's management for written statements about the accuracy and completeness of the information provided to third parties for confirmation. These statements are also saved.

The specific documents may vary depending on the audit engagement and the requirements of the auditing firm or regulatory authorities.