The auditor should ordinarily mail confirmation requests to all banks with which the entity has conducted any business during the year, regardless of the year-end balance, since

Question

Quizplus · Accepted Answer

Mailing confirmation requests to all banks with which the entity has conducted any business during the year, regardless of the year-end balance, is important because the confirmation form also seeks information about indebtedness to the bank. This information is relevant to the auditor's assessment of the entity's financial statements. Additionally, this procedure is not required by generally accepted auditing standards but is considered a best practice. This procedure does not necessarily detect kiting activities nor does it relieve the auditor of any responsibility with respect to nondetection of forged checks.

The Auditor Should Ordinarily Mail Confirmation Requests to All Banks