ACCA AA · Chapter 11 · Question 5 of 12
Which of the following is correct regarding a bank confirmation request?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The auditor controls the sending of the request and the bank replies directly to the auditor
Explanation
To maximise reliability, the auditor must maintain control over external confirmation requests, which includes sending them and receiving the responses directly. The client signs the request to authorise disclosure, but must not handle the reply. Confirmations are relevant for all balances and facilities, not only overdrafts.
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