The primary purpose of sending a standard confirmation request to financial institutions with which the entity has done business during the year is to

Question

Quizplus · Accepted Answer

The primary purpose of a standard confirmation request is to verify the accuracy of financial statement information, specifically deposit and loan balances. This helps to ensure that financial statements are presented fairly and accurately. While confirmation requests may indirectly help to detect kiting activities or provide information about contingent liabilities and secured transactions, these are not the primary purposes of the request. Additionally, a proof of cash may be prepared using bank statements and canceled checks rather than confirmation requests.

The Primary Purpose of Sending a Standard Confirmation Request to Financial