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:
“All in all, the creative act is not performed by the artist alone; the spectator brings the work in contact with the external world by deciphering and interpreting its inner qualifications and thus adds his contribution to the creative act. This becomes even more obvious when posterity gives its final verdict and sometimes rehabilitates forgotten artists.”
—Marcel Duchamp (1887–1968)