17AU-C 505 External Confirmations
Related AU-C Section Requirements
Results of Confirmation Procedures
Management’s Refusal to Allow Confirmations
Designing the Confirmation Request
Timing of Confirmation Request
Use of Negative Form of Confirmation Request
Steps in Confirmation of Accounts Receivable
Nonresponse to Confirmation Requests
Nondelivery of Confirmation Request
SCOPE
AU-C 505 provides guidance on audit procedures on external confirmations, including:
- how to respond if management refuses to allow them,
- negative confirmations and responses, and
- evaluating the results.
DEFINITIONS OF TERMS
Source: AU-C 505.06. For definitions related to this standard, see Appendix A, “Definitions of Terms”: Exception, External confirmation, Negative confirmation request, Nonresponse, Positive confirmation request.
OBJECTIVE OF AU-C SECTION 505
The objective of the auditor, when using external confirmation procedures, is to design and perform such procedures to obtain relevant and reliable audit evidence.
(AU-C Section 505.05)
REQUIREMENTS
Related Au-C Section Requirements
AU-C 330.20 requires the auditor to consider whether external confirmations should be performed, and requires the use of confirmations for accounts receivable unless
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