External Confirmations

Free CPA AUD (Auditing & Attestation) lesson in Performing Further Procedures and Obtaining Evidence. 14 min read, ~2,039 words.

AU-C 505 governs external confirmations: direct written responses from a third party, in paper or electronic form. Positive confirmations are the default for accounts receivable unless all four conditions for negative confirmations are documented. The auditor controls every step (selection, request, mailing, and direct receipt) to keep the evidence independent...

What this lesson covers

• Content
• Example 1
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• III.D3

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