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The Audit Confirmation Letter is a fundamental tool in South African audit practice, used to obtain independent verification of financial information from third parties during an audit engagement. This document type is specifically designed to comply with South African audit regulations, including the Auditing Profession Act 26 of 2005 and International Standards on Auditing (ISA) 505. It is typically used when auditors need to verify aspects such as bank balances, investment holdings, loan agreements, or other financial arrangements with external parties. The letter must incorporate considerations for the Protection of Personal Information Act (POPIA) and maintain professional standards as regulated by the Independent Regulatory Board for Auditors (IRBA). The confirmation process is a crucial part of gathering audit evidence and maintaining the integrity of financial reporting in the South African business environment.

1. Letter Header: Auditor's letterhead, date, reference number, and professional designation

2. Addressee Details: Full name and address of the third party being asked to provide confirmation

3. Introduction: Identifies the audit client, the purpose of the confirmation request, and the auditor's appointment

4. Scope of Confirmation: Specific details of what information needs to be confirmed (e.g., account balances, transactions, agreements)

5. Cut-off Date: Clear specification of the date for which the confirmation is requested

6. Response Instructions: Clear guidelines on how to complete and return the confirmation, including deadline

7. Confidentiality Statement: Statement regarding the confidential nature of the request and compliance with POPIA

8. Authorization: Client's authorization for the third party to release information to the auditor

9. Signature Block: Auditor's signature, name, and professional designation