ISA 505 External Confirmations is one of the International Standards on Auditing. Its primary aim is to require the auditor to obtain external sources of audit evidence rather than only relying on internally provided documents. The example is bank account balances confirmed by the client's bankers.
Other examples include accounts receivable confirmation, inventory held by third parties and confirmation by solicitors and surveyors.
Famous quotes containing the word external:
“Given that external reality is a fiction, the writer’s role is almost superfluous. He does not need to invent the fiction because it is already there.”
—J.G. (James Graham)