ICAEW ARF · Chapter 8 · Question 7 of 12
Which of the following is correct about a bank confirmation request for audit purposes?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The request is authorised by the client but sent by the auditor, and the bank replies directly to the auditor
Explanation
Banks need the client's authority to disclose information, but the auditor should control the process by sending the request and receiving the reply directly. This prevents the client from intercepting or altering the response and makes the evidence more reliable.
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