Sample Format for Creditors Confirmations
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:
Particulars |
Invoice
Number |
Date |
Narration |
Amount |
Purchase |
|
|
|
|
Purchase |
|
|
|
|
Purchase |
|
|
|
|
Payment |
|
|
|
|
Purchase |
|
|
|
|
|
|
|
|
|
Amount
Due |
|
|
|
90.73 |
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:
Particulars |
Invoice
Number |
Date |
Narration |
Amount
(Lakhs) |
Sale |
|
|
|
|
Sale |
|
|
|
|
Sale |
|
|
|
|
Receipt |
|
|
|
|
Sale |
|
|
|
|
|
|
|
|
|
Amount |
|
|
|
96.75 |
Date
(Signature of creditor/responsible official)
For any inquiry
you may write us on: ramanujan.ca@gmail.com
Disclaimer: The information provided by
the author in the article is for general informational and educational purposes only. All
information provided is in good faith, however we make no representation or
warranty of any kind, express or implied, regarding the accuracy, adequacy,
validity, reliability, availability or completeness of any information in the
article.