Why do auditors request bank confirmation letters? Are the bank statements not enough?
The reasons why auditor request bank confirmation letters are as follows:
The future of bank confirmation letters
The preparation of bank confirmation letters has always been an onerous task for bankers, and in todays’ hi-tech environment, the expectation for speedy and accurate delivery has become higher.
A number of firms has released software which may improve the efficiency of processing bank confirmation letters though online portals. Once the all banks have signed up and the integrity of the security can be validated, this may prove to be the future of bank confirmations.
The Auditing Practices Board are currently reviewing the future of how bank confirmations will fit into auditing going forward and as such are looking to revise International Standard Auditing 505 (External Confirmations) in this regard.
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