External Confirmation

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Accounting glossary · Understand, connect, apply

External confirmation obtains a direct response to the auditor from a third party about information relevant to the audit.

Example

An auditor asks a bank to confirm an account balance and specified borrowing arrangements at year-end.

Remember the difference

The auditor controls the confirmation process and evaluates response reliability. A missing reply may require follow-up or alternative procedures.

Browse the accounting glossary · PCAOB reference: AS 2310

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Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.

Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.

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