In this article author (CA RAMANUJAN SHARMA) has discussed about the one of the method of obtaining evidence External confirmation and shared the sample format for obtaining Confirmations:

Definitions as per SA 505: External confirmation

External Confirmation: Audit evidence obtained by the auditor as a direct written response to the auditor from a third party in paper form or by electronic form or other medium

Positive Confirmation Request: A request that the confirming party respond directly to the auditor indicating whether the confirming party agrees or disagrees with the information in the request, or providing the requested information

Illustrative Letter of Confirmation to be Sent to Creditors - Positive Form

[Letterhead of Entity]

[Name and Address of Creditor]

Dear Sir,

For audit purposes, kindly confirm directly to our auditors (name and address of the auditors) that the balance of INR _ _ _ _ _ _ _ _ _ _due by us to you as on _ _ _ _ _ _ _ _ as shown by our books, is correct. The details of the balance are as under:

A stamped envelope addressed to our auditors is enclosed for your convenience.

Ø  If the amount shown is in agreement with your books, kindly strike-out the paragraph marked (B) below.

Ø  If the amount shown is not in agreement with your books, kindly furnish the details in the proforma given in the paragraph marked (B) below and strike-out paragraph (A).

In either case, kindly sign at the place provided below and return this entire letter directly to our auditors in the enclosed envelope. Your prompt compliance with this request will be appreciated. In case the list of invoices forming the balance is too large, these details may not be given.

Kindly return this form in its entirety.

Yours faithfully,

(Signature of responsible official of the entity)

[Name and Address of Creditors]

(A) We confirm that the above stated amount is correct as at ______

OR

(B) We state that the above-stated amount is not correct as per our records. The details of the balance as at _____ as per our records are as below:

Date

(Signature of creditor/responsible official)

Source: ICAI Guidance note and Standard on Auditing 

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