An inquiry letter, also known as a confirmation letter, refers to a method in which the auditor sends a letter to a third party to confirm the matters contained in the accounting records of the audited unit.

Details:

Note

1. Distinguish between inquiries for bank balances and inquiries for bank balances. The balance is the final result of all the amounts that occurred before a certain cut-off point in time. By inquiring about the bank balance, it can be confirmed whether the bank balance as of a certain point in time actually exists. The balance is the original record when the business occurred. By inquiring the bank balance, you can verify whether a certain banking business actually occurred.

For example, when verifying an investor's investment in monetary funds, the bank confirmation letter is a confirmation of the bank balance. When auditing the bank deposit items listed on the balance sheet, the bank confirmation letter is a confirmation of the bank balance.

2. Sign correctly. The sender should sign the official seal. The replying party should sign the official seal of the unit on "Data proves correct" and "Data is inconsistent and matters needing explanation" respectively according to the actual situation, and have the signature or seal of the handling personnel. The official seal of the unit cannot be replaced by the official seal of the unit's internal organization.

3. Fill in the form truthfully and respond promptly. The sender of the letter should truthfully fill in the form based on the unit's account books and records. The financial institution serving as the replying party should check the original records and fill in the bank confirmation letter items one by one. After completing the form, it should be promptly replied to the accounting firm and reported to the issuing bank in accordance with relevant regulations. The letter party will charge a confirmation fee.

4. Pay attention to the scope of bank confirmation inquiries. Bank inquiries include not only banks with balances at a certain cut-off point, but also accounts with deposits, loans, custodial securities, and bills payable that have been settled. This is because it is possible that the deposit account has been settled, but there are still bank loans or other liabilities; it is also possible that the loan account has been settled, but there is still unpaid interest.

5. The verification procedure must be appropriate. After the certified public accountant has written the confirmation letter and handed it to the audited entity for sealing, he should send the confirmation letter in person. He should not give the confirmation letter to the client. When obtaining the confirmation letter reply from the client, he must evaluate the reliability of the reply letter. Don't be careless.

6. The verification work papers must be complete. The list of bank inquiries, a copy of the postage receipt for sending the inquiry letter, and the work records of on-site inquiries at the bank must be complete and attached to the bank's relevant project approval form. The correct use of bank confirmation letters is of great significance for improving the quality of accounting information and ensuring the authenticity and integrity of bank-related projects.

The above content refers to Baidu Encyclopedia