The usefulness of the standard bank confirmation request may be limited because the bank employee who completes the form may:

Question

Quizplus · Accepted Answer

Choice "D" is correct. A bank employee may not have access to all information about transactions with the audit client and thus may be unaware of all the financial relationships the bank has with the client. Choice "A" is incorrect. Standard bank confirmations contain a signature from an authorized client employee and are a very commonly used audit procedure. It is unlikely that a bank would refuse the request since it has been authorized by the client. Choice "B" is incorrect. The confirmation is used to verify the bank balance as of year-end. Bank employees generally would not have access to the client's bank reconciliation. Choice "C" is incorrect. Even though it is likely that the bank would have access to a cutoff bank statement, the detail on this statement is unnecessary to confirm the final balance.

The Usefulness of the Standard Bank Confirmation Request May Be