What is the primary purpose of a bank confirmation?
Regarding this, what is the primary purpose of a bank reconciliation?
The purpose of a bank reconciliation. A bank reconciliation is used to compare your records to those of your bank, to see if there are any differences between these two sets of records for your cash transactions.
Furthermore, what is an audit confirmation request? Audit confirmation letter is a specific type of inquiry. It is the process of obtaining a representation of information or of an existing condition directly from a third party. Confirmations are also used to obtain audit evidence about the absence of certain conditions.
People also ask, what are bank confirmations?
A bank confirmation letter (BCL) is a letter from a bank or financial institution confirming the existence of a loan or a line of credit that has been extended to a borrower.
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.