For purposes of an audit of financial statements,electronic confirmation of cash balances:

Question

Quizplus · Accepted Answer

Electronic confirmation of cash balances is acceptable when properly controlled, which includes using a reputable third-party vendor, sending the confirmations directly to the financial institution, and obtaining additional documentation to verify the authenticity of the confirmation response. This method is commonly used by auditors to obtain reliable and efficient confirmation of client cash balances.

For Purposes of an Audit of Financial Statements,electronic Confirmation of Cash