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:
“The ideal of brotherhood of man, the building of the Just City, is one that cannot be discarded without lifelong feelings of disappointment and loss. But, if we are to live in the real world, discard it we must. Its very nobility makes the results of its breakdown doubly horrifying, and it breaks down, as it always will, not by some external agency but because it cannot work.”
—Kingsley Amis (1922–1995)