Easy Office
LCI Learning

Sample Format for Creditors Confirmation

CA Ramanujan Sharma , Last updated: 17 April 2023  
  Share


In this article author has discussed about the External confirmation and shared the sample format for obtaining Creditors 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
Sample Format for Creditors Confirmation

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.

  • If the amount shown is in agreement with your books, kindly strike-out the paragraph marked (B) below.
  • 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)

The author can also be reached at ramanujan.ca@gmail.com

Disclaimer: The information provided by the author in the article is for general informational 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.

Join CCI Pro

Published by

CA Ramanujan Sharma
(Proprietor)
Category Audit   Report

  10297 Views

Comments


Related Articles


Loading