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External confirmations

AUD Chapter 22 · Area III · Blueprint III.D.3

A confirmation is the auditor asking an outsider, "Is this true?" and getting the answer directly. It is among the strongest evidence available, which is why the Blueprint tests it twice: once on how to confirm, including electronic methods, and once at the analysis level on what to do with exceptions, nonresponses and incomplete replies.

In this chapter

1. What a confirmation is and why it is strong
2. Positive and negative requests
3. When confirmation is expected
4. Keeping control of the process
5. Electronic confirmations and intermediaries
6. Exceptions, nonresponses and incomplete replies
7. Coming change: SAS No. 150

This chapter has 7 lessons, 50 practice MCQs with explanations and 10 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Positive and negative confirmations
• electronic confirmations and intermediaries
• exceptions, nonresponses and alternative procedures

Chapter 21: Audit procedures: tests of controls, tests of details and analytics · Chapter 23: Matters that need special consideration