How to Use Bank Confirmation Letter Correctly
Bank confirmation letter refers to the auditor sending a letter to the bank in the name of the audited entity to inquire about bank deposits, bank loans, custody securities, notes payable, etc., so as to verify whether these subjects of the audited entity are true, legal and complete. Auditors should pay attention to the following points when using the bank confirmation letter in the audit: 1. Distinguish between bank balance inquiry and bank amount inquiry. Balance is the final result of all amounts incurred before a certain cut-off point. Whether the bank balance really exists as of a certain point can be confirmed by querying the bank balance. The amount incurred is the original record when the business occurs. Inquiring about the amount incurred by the bank can confirm whether a certain banking business really occurs. For example, when verifying investors' investment in money funds, the bank confirmation letter is the confirmation of the amount incurred by the bank. When auditing the bank deposits listed in the balance sheet, the bank confirmation letter is the confirmation of the bank balance. 2. Correct signature. The sender should sign the official seal. The bank confirmation letter is sent by the auditor to the bank in the name of the audited entity, and the sender is the audited entity. According to the actual situation, the respondent shall sign the official seal of the unit at the places of "data proved to be correct" and "data inconsistent and matters needing explanation", and the person in charge shall sign or seal it. The official seal of the unit cannot be replaced by the official seal of the internal organization of the unit. 3. Fill in truthfully and reply in time.