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Reliability of audit evidence

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Reliability of audit evidence

  • This topic has 1 reply, 2 voices, and was last updated 9 months ago by Kim Smith.
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  • September 9, 2021 at 4:59 pm #635158
    QAZWED
    • Topics: 13
    • Replies: 26
    • ☆

    If a bank issued standard Bank confirmation letter to financial controller of a company, would it result in decline of reliability of evidence?

    September 9, 2021 at 5:06 pm #635162
    Kim Smith
    Keymaster
    • Topics: 88
    • Replies: 6096
    • ☆☆☆☆☆

    Yes – replies to any “external confirmation request” by the auditor must be received directly by the auditor. The whole point of external confirmation is that it is obtained independently for comparison/reconciliation with documentation held by the entity (e.g. monthly bank statements sent to the entity).

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