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:
“A State, in idea, is the opposite of a Church. A State regards classes, and not individuals; and it estimates classes, not by internal merit, but external accidents, as property, birth, etc. But a church does the reverse of this, and disregards all external accidents, and looks at men as individual persons, allowing no gradations of ranks, but such as greater or less wisdom, learning, and holiness ought to confer. A Church is, therefore, in idea, the only pure democracy.”
—Samuel Taylor Coleridge (1772–1834)