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ISA 505 — External Confirmations

ISA 505 is an international pronouncement addressing external confirmation procedures under the auditor’s control. It addresses external confirmation procedures, including designing requests, retaining control of the confirmation process, evaluating reliability and following up exceptions or non-responses. A confirmation is not automatically reliable solely because it purports to come from outside the entity.

Worked example

The auditor sends a confirmation request directly to the bank and evaluates the response.

Common mistake

A confirmation supplied through the client is not automatically equivalent to a response sent directly to an auditor-controlled address.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA AA Supporting September 2026–June 2027
ACCA AAA (INT) Supporting September 2026–June 2027