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An audit confirmation email is a vital document in the world of accounting, compliance, and assurance. Its primary function is to verify the accuracy of information provided by a client during a financial audit or review. Sent from auditors or external parties engaged in the audit process, these emails are used to request the confirmation of balances, transactions, and other relevant data. The email’s contents typically include a reference to the ongoing audit, specific requests for corroboration, and a deadline for response.
Crafting an Effective Audit Confirmation Email
An audit confirmation email serves as an official request to a third party to verify information relevant to an audit. It’s essential to structure it meticulously to ensure clarity and completeness.
Subject Line
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- Keep it concise yet informative, specifying the purpose of the audit and the organization involved.
- Example: “Audit Confirmation Request for XYZ Company’s Financial Statements”
Body
Divide the email into clear sections:
1. Introduction
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- Start with a friendly and professional greeting.
- Indicate your role and the purpose of the email, i.e., audit confirmation.
2. Specific Information Request
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- Clearly state the information you need verified, including dates, accounts, and documents.
- If possible, provide context or background on the audit to help the recipient understand its relevance.
3. Deadline and Response Format
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- Set a clear deadline for the response and specify the preferred format, e.g., email, letter, or online portal.
- Explain any specific instructions or requirements for the response.
4. Table of Information Requested
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- If there are multiple items to be verified, consider using a table to organize the request.
- The table should clearly list the specific information needed, relevant dates, and the response format required.
5. Contact Information
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- Include your contact information, including email, phone number, and mailing address.
- Consider providing alternative contact methods for urgent inquiries.
Table Example
| Item | Information Requested | Relevant Dates | Response Format |
|---|---|---|---|
| Cash in Bank | Account balance as of March 31, 2023 | N/A | Email confirmation |
| Accounts Receivable | Aging summary as of April 1, 2023 | March 15, 2023 – April 1, 2023 | Online portal submission |
| Inventory | Physical inventory count as of May 1, 2023 | April 15, 2023 – May 1, 2023 | Letter response |
Sample Audit Confirmation Emails
Confirmation of Client’s Payables
Dear [Client Contact Name],
We are conducting an audit of [Client Name] as of [date]. As part of our procedures, we request the following information to confirm the amounts owed to your company:
- A list of all invoices outstanding as of [date]
- Confirmation of any outstanding credit memos
- A reconciliation of any prepayments or advances received
Please provide this information by [deadline] to the following address:
[Address]
Confirmation of Bank Balances
Dear [Bank Contact Name],
We are auditing [Client Name] for the year ended [date]. To confirm the balances as of [date], we request that you provide the following information:
- A bank statement for each of the following accounts:
- [list of account numbers]
- A reconciliation of any outstanding checks or deposits as of [date]
Please mail this information to the following address by [deadline]:
[Address]
Confirmation of Investments
Dear [Investment Manager Name],
We are conducting an audit of [Client Name] for the period ended [date]. To confirm the company’s investments, we request that you provide the following:
- A list of all investment accounts as of [date]
- Confirmation of the balances in each account as of [date]
- A breakdown of any unrealized gains or losses on investments
Please provide this information by [deadline] to the following address:
[Address]
Confirmation of Accounts Receivable
Dear [Customer Contact Name],
We are performing an audit of [Client Name] as of [date]. To verify the balances owed to the company, we request that you provide the following:
- A list of all open invoices as of [date]
- Confirmation of any outstanding credit memos
- A reconciliation of any prepayments or advances made
Please return this information by [deadline] to the following address:
[Address]
Confirmation of Payroll
Dear [Payroll Administrator Name],
We are conducting an audit of [Client Name] for the year ended [date]. To verify the company’s payroll information, we request that you provide the following:
- A copy of the payroll register for the period from [start date] to [end date]
- Confirmation of the total wages and salaries paid during the period
- Documentation of any payroll deductions or withholding taxes
Please supply this information by [deadline] to the following address:
[Address]
Confirmation of Fixed Assets
Dear [Property Manager Name],
We are auditing [Client Name] for the fiscal year ending [date]. To confirm the company’s fixed assets, we request the following:
- A list of all fixed assets owned by [Client Name] as of [date]
- Confirmation of the acquisition cost and current net book value of each asset
- A reconciliation of any fixed assets disposed of during the period
Please forward this information by [deadline] to the following address:
[Address]
Confirmation of Inventory
Dear [Warehouse Manager Name],
We are auditing [Client Name] as of [date]. To verify the company’s inventory, we request the following:
- A physical inventory count conducted as of [date]
- Confirmation of the inventory unit costs
- A reconciliation of any inventory variances
Please submit this information by [deadline] to the following address:
[Address]
What Is an Audit Confirmation Email?
An audit confirmation email is a formal request for a third party to verify the accuracy of information provided by an auditee. The email typically includes a list of questions about the auditee’s financial records and operations. The third party is asked to review the information and respond to the questions, confirming or denying the accuracy of the information.
Audit confirmation emails are used by auditors to gather evidence to support their audit findings. They are also used by auditees to provide auditors with assurance that their financial statements are accurate and complete.
Subject: Audit Confirmation Request
Predicate: An audit confirmation email is used to gather evidence to support audit findings.
Object: The email includes a list of questions about the auditee’s financial records and operations.
Subject: Purpose of Audit Confirmation Emails
Predicate: Audit confirmation emails are used to verify the accuracy of information provided by an auditee.
Object: The emails are used by auditors to gather evidence to support their audit findings and by auditees to provide auditors with assurance.
Subject: Importance of Audit Confirmation Emails
Predicate: Audit confirmation emails are an important part of the audit process.
Object: The emails help auditors to obtain evidence to support their findings and provide auditees with an opportunity to correct any errors in their financial statements.
Alright folks, that’s all there is to know about audit confirmation emails. I hope this article has been helpful in clearing up any confusion. If you have any other questions, feel free to drop us a line. Thanks for reading, and stay tuned for more accounting and finance tips in the future!