The Audit Confirmation Letter is a crucial component of the external audit process in Singapore, designed to obtain independent verification of financial information. It is typically used when auditors need to confirm account balances, transactions, or other financial arrangements with third parties. The document must comply with Singapore Standards on Auditing (SSAs), particularly SSA 505 on External Confirmations, and follows strict protocols established by ACRA and ISCA. These letters are essential for maintaining audit integrity and providing reliable evidence for the audit opinion.
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1. Recipient Details: Full name, address, and professional details of the auditor or audit firm
2. Purpose Statement: Clear statement indicating the purpose of the confirmation letter and the audit engagement
3. Financial Information: Specific details of accounts, balances, or transactions requiring confirmation
4. Date of Confirmation: Specific date for which the confirmation applies and relevant financial period
5. Authorization Statement: Express authorization for the release of information to auditors
1. Additional Information Request: Section for requesting specific additional details beyond standard confirmation requirements
2. Confidentiality Statement: Special provisions regarding the confidentiality of information being disclosed
3. Time Limitation Clause: Specific validity period for the confirmation, if applicable
4. Legal Compliance Statement: Reference to relevant Singapore laws and regulatory requirements being complied with
1. Financial Statements Extract: Relevant portions of financial statements requiring confirmation
2. Authorization Forms: Standard forms authorizing the release of information to auditors
3. Supporting Documentation: Additional documents supporting the confirmation details
4. List of Specific Inquiries: Detailed list of specific items or transactions requiring confirmation
Relevant legal definitions
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