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:
“Truth in philosophy means that concept and external reality correspond.”
—Georg Wilhelm Friedrich Hegel (1770–1831)