ISA 505 Audit External Confirmation

ISA 505 Audit External Confirmation

What is external confirmation?

External confirmation is the process of obtaining and determining audit evidence via a third-party representation of information directly.

When auditor has to send it?

Auditor sends the confirmation when they need to verify :

1. Bank balances and other information from bankers.

2. Account receivables and payables balances.

3. Stocks held by third parties at bonded warehouses for processing or on consignment.

4. Property title deeds are held by lawyers or financiers for safe custody or security.

5. Investments purchased from stockbrokers but not delivered at the year ended.

6. Loan from lenders.

When not to use audit confirmation?

1. When examining the debtors’ ability to pay the outstanding balances.

2. When confirming the valuation of goods held on consignment.

3. When defining any unrecorded liabilities from suppliers.

4. When the Information is not adequately addressed by confirmation.

Source:

ISA 505 – External confirmation:

https://www.ifac.org/system/files/downloads/a024-2010-iaasb-handbook-isa-505.pdf

https://www.mia.org.my/v2/downloads/handbook/standards/ISA/2018/06/01/ISA_550.pdf

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 
 
AuditKtp Ktpaudit confirmation