What is an audit confirmation?
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Similarly one may ask, what is a positive confirmation?
Positive confirmation is an auditing inquiry that requires the customer to respond, confirming the accuracy of an item. Positive confirmation requires proof of accuracy by affirming that the original information was correct or by providing the correct information if incorrect.
One may also ask, are bank confirmations required for an audit? (1)For cash balances, there is no requirement shown in the auditing standards which means confirmation in audit of cash balances is not a must. But in fact, it is performed in most audits. (2)As for accounting receivables balances, it is required by the auditing standards to use confirmations.
Herein, what is confirmation of accounts receivable?
The accounts receivable confirmation. March 01, 2018. When an auditor is examining the accounting records of a client company, a primary technique for verifying the existence of accounts receivable is to confirm them with the company's customers. The auditor does so with an accounts receivable confirmation.
How do you respond to an audit letter?
When you disagree with the findings of an audit report or IRS notice, communicate your disagreement in writing. In case of an IRS notice, you should respond directly to the concerns the auditor listed in the notice. Write a letter and explain why you disagree along with documents to support your position.