With respect to SA 505, “External Confirmations”, name the appropriate term that may be used in relation to the below statements: (a) Audit evidence…

CA Intermediate · Auditing and Ethics · RTP · January 2026
With respect to SA 505, “External Confirmations”, name the appropriate term that may be used in relation to the below statements: (a) Audit evidence obtained as a direct written response to the auditor from a third party (the confirming party), in paper form, or by electronic or other medium. (b) A request that the confirming party respond directly to the auditor indicating whether the confirming party agrees or disagrees with the information in the request, or providing the requested information. (c) A request that the confirming party respond directly to the auditor only if the confirming party disagrees with the information provided in the request. (d) A failure of the confirming party to respond, or fully respond, to a positive confirmation request, or a confirmation request returned undelivered. (e) A response that indicates a difference between information requested to be confirmed, or contained in the entity's records, and information provided by the confirming party.

Suggested Answer and Working Notes:

(a) Audit evidence obtained as a direct written response to the auditor from a third party (the confirming party), in paper form, or by electronic or other medium. External Confirmation. (b) A request that the confirming party respond directly to the auditor indicating whether the confirming party agrees or disagrees with the information in the request, or providing the requested information. Positive Confirmation request. (c) A request that the confirming party respond directly to the auditor only if the confirming party disagrees with the information provided in the request. Negative confirmation request. (d) A failure of the confirming party to respond, or fully respond, to a positive confirmation request, or a confirmation request returned undelivered. Non-response. (e) A response that indicates a difference between information requested to be confirmed, or contained in the entity's records, and information provided by the confirming party. Exception.

Topics: Audit Evidence

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