Professional Documents
Culture Documents
PSA 505
Generalizations on Audit
Evidence
Determinin Selecting
g the Designing
the
information the Sending
appropria
to be confirmati the
confirmed te
on requests
or confirmin
requests
requested g party
3
External Confirmation Procedures
Determini Selecting
ng the Designing
the
informatio the Sending
appropria
n to be confirmati the
te
confirmed on requests
or confirmin
requests
requested g party
4
External Confirmation
Determini Selecting
ng the Designing
the
informatio the Sending
appropria
n to be confirmati the
te
confirmed on requests
or confirmin
requests
requested g party
6
Confirmation requests
are sent a confirming
party the auditor
believes is
knowledgeable about
Selecting
the
the information to be
appropria
te confirmed
confirmin
g party
External Confirmation Procedures
Determini Selecting
ng the Designing
the
informatio the Sending
appropria
n to be confirmati the
te
confirmed on requests
or confirmin
requests
requested g party
8
1 The assertions being addressed
Factors to
consider
3 The layout and presentation
Positive Confirmation
Letter
Positive Confirmation
Letter
It indicates whether the confirming
party agrees or disagrees with
information in the request or providing
the requested information
Different Confirmation Request
Determini Selecting
ng the Designing
the
informatio the Sending
appropria
n to be confirmati the
te
confirmed on requests
or confirmin
requests
requested g party
13
The auditor may send
an additional
confirmation request
when a reply to a
previous request has
not been received
Sendin
g the
within a reasonable
request
s time
Management Refusal… Perform
Evaluate alternative
the audit
procedures
implications
designed to
of obtain
Inquire as manageme relevant
to nt’s refusal and reliable
manageme on the audit
nt’s auditor’s evidence
reasons for assessment
the refusal of the
relevant
risks of
material
Results of External Confirmation
Procedures
2
Confirming Party uses third party
to coordinate
Evaluating Evidence
Obtained
The auditor shall evaluate
whether the results
provide relevant and
reliable audit evidence, or
whether performing
further audit procedures is
necessary
Results of External Confirmation
Procedures
Initial Audit
Engagement
The FS for prior period were
audited by a predecessor auditor
Definitions…
Predecessor Auditor
Predecessor Auditor
Predecessor Auditor