Source sheetbalance.canariasgestalt.com
An audit confirmation email is a request from an auditor to a company to verify the accuracy of the company’s financial records or other information. The company must reply to the audit confirmation email with the requested information or documentation. The auditor uses the information to form an opinion on the company’s financial statements or other information. The company must reply to the audit confirmation email in a timely and accurate manner. The auditor will rely on the information provided by the company to form their opinion. The company must be aware of the importance of replying to the audit confirmation email and should take the time to do so carefully and accurately.
Structuring Your Audit Confirmation Response
Responding to audit confirmation requests requires precision and accuracy. To ensure your response is well-structured, follow these steps:
Also Read
1. Thoroughly Review the Request
Read the confirmation request carefully to understand the specific information being sought. Identify the following details:
- Name of your organization
- Name of the auditor
- Date of the request
- Accounts or balances being confirmed
- Time period
2. Gather Supporting Documentation
Compile all necessary documents, such as bank statements, account reconciliations, and ledgers, that support the information requested in the confirmation.
3. Construct a Clear and Concise Response
Your response should be:
- Specific: Address each item in the confirmation request.
- Accurate: Provide only truthful and verifiable information.
- Concise: Use clear and direct language, avoiding unnecessary details.
- Complete: Respond to all the information requested in the confirmation.
4. Table or List Format
Use a table or list format to present your confirmation response. This helps the auditor easily identify and verify the information provided.
| Account | Balance as of [Date] |
|---|---|
| Cash | $50,000 |
| Accounts Receivable | $20,000 |
| Inventory | $30,000 |
5. Additional Information
If there are any exceptions or limitations in your confirmation, such as:
- Conditional statements
- Unconfirmed amounts
- Any unusual balances
Clearly state them in your response.
6. Legible Signature
The confirmation should be signed by an authorized individual with a clear and legible signature.
7. Timely Submission
Return the completed confirmation response to the auditor by the requested deadline.
7 Sample Audit Confirmation Email Replies
Acknowledging Receipt and Requesting Additional Information
Dear [Auditor’s name],
Thank you for your email confirming the audit. We have received it and will provide you with the requested information as soon as possible.
In the meantime, we would like to request the following additional information to ensure a smooth audit process:
- Detailed list of documents you will require
- Estimated timeline for the audit
- Any specific areas or procedures you would like us to focus on
Please let us know if you have any questions. We look forward to working with you.
Sincerely,
[Your name]
Confirming Information and Providing Timeline
Dear [Auditor’s name],
Thank you for your email. We confirm that the information you have provided is accurate and up-to-date.
We expect to have the following documents ready for your review by [date]:
- Financial statements
- Tax returns
- Payroll records
We understand the importance of a thorough audit and will cooperate fully with your team. Please let us know if you require any additional information or have any questions.
Sincerely,
[Your name]
Requesting Time Extension
Dear [Auditor’s name],
We are writing to request a time extension for the upcoming audit. Due to unforeseen circumstances, we are unable to meet the originally agreed-upon timeline.
We understand the significance of the audit and are committed to providing you with the necessary information. However, we believe that a brief extension will allow us to present the most accurate and comprehensive documentation.
We propose extending the deadline by [number] days, to [new date]. Please let us know if this is acceptable.
We apologize for any inconvenience this may cause and appreciate your understanding.
Sincerely,
[Your name]
Inquiring About Audit Scope
Dear [Auditor’s name],
We are writing to inquire about the scope of the upcoming audit. While we understand the general purpose of the audit, we would like to request further clarification on the following:
- Specific areas or procedures that will be examined
- Whether the audit will include a review of internal controls
- Any specific documentation or information that will be required
Your guidance in this matter will help us to prepare effectively for the audit and ensure that we provide you with the necessary information.
Thank you for your time and attention.
Sincerely,
[Your name]
Providing Additional Information
Dear [Auditor’s name],
Please find attached the following additional information that you requested in your email:
- Copy of the company’s bylaws
- List of all outstanding accounts payable
- Copies of recent board meeting minutes
We hope this information is helpful. If you have any further questions, please do not hesitate to contact us.
Sincerely,
[Your name]
Declining Request for Information
Dear [Auditor’s name],
Thank you for your email requesting access to our company’s personnel files. We understand the importance of the audit and the need for thorough documentation. However, we are unable to provide personnel files as they contain sensitive and confidential information protected by law.
We are willing to cooperate with the audit in other ways and provide you with relevant information that does not violate our legal obligations. We propose the following alternative solutions:
- Providing aggregate data on employee salaries and benefits
- Reviewing relevant HR policies and procedures with you
We believe these alternatives will allow us to fulfill the objectives of the audit while respecting employee privacy and legal compliance.
Sincerely,
[Your name]
Scheduling Audit Meeting
Dear [Auditor’s name],
Thank you for confirming the availability of your team for the upcoming audit. To facilitate the process, we would like to schedule a brief meeting to discuss the following:
- Audit timeline and arrangements
- Access to necessary documents and information
- Coordination of audit activities
Please let us know the best time for you to meet with us. We are available [list of available times].
We look forward to a productive and successful audit.
Sincerely,
[Your name]
How to Respond to an Audit Confirmation Email
Who should respond to audit confirmation email?
An authorized representative of the company, such as the CFO or controller should respond to the audit confirmation email.
What should be included in the response?
The response should include the following information:
- Confirmation of the company’s name, address, and other identifying information
- Confirmation of the period being audited
- The name and contact information of the person responsible for providing the requested information
- A statement that the company will cooperate with the audit and provide all necessary information
How should the response be formatted?
The response should be formatted in a clear and concise manner. It should be easy for the auditor to understand and should not contain any unnecessary information.
When should the response be sent?
The response should be sent as soon as possible after the audit confirmation email is received. This will give the auditor time to review the information and follow up with any questions.
How to Verify an Audit Confirmation Email
What are the signs of a legitimate audit confirmation email?
A legitimate audit confirmation email will typically include the following:
- The name of the auditing firm
- The contact information for the auditor
- The purpose of the audit
- The period being audited
- A request for specific information
What are the signs of a phishing email?
A phishing email will typically include one or more of the following:
- Misspellings or grammatical errors
- A request for personal information, such as your Social Security number or bank account number
- A link to a website that looks similar to the auditor’s website but is actually a fake website
- A request to click on a link or open an attachment
What should you do if you receive a phishing email?
If you receive a phishing email, do not click on any links or open any attachments. Instead, report the email to your IT department and delete it.
How to Protect Yourself from Audit Fraud
What are the most common types of audit fraud?
The most common types of audit fraud include:
- Financial statement fraud
- Misappropriation of assets
- Billing fraud
- Expense report fraud
What are the red flags of audit fraud?
The red flags of audit fraud include:
- Unusual or unexplained transactions
- Missing or altered documents
- Employees who are unwilling to cooperate with the audit
- A history of financial problems
What should you do if you suspect audit fraud?
If you suspect audit fraud, you should contact your internal audit department or the external auditors.
Well, there you have it! Replying to audit confirmation emails can be a breeze if you follow these simple steps. Just remember to be clear, concise, and timely in your responses. And if you ever have any questions, feel free to reach out to the auditor for clarification. Thanks for reading, and be sure to visit again soon for more auditing tips and tricks!