Direct confirmations from third parties — design, sending, follow-up, evaluation.
To design and perform external confirmation procedures to obtain relevant and reliable audit evidence.
SA 505 sits in the Audit Evidence phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 505 into practice — built from the ICAI working-paper set, free to download.
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SA 505 — External Confirmations — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. Direct confirmations from third parties — design, sending, follow-up, evaluation. To design and perform external confirmation procedures to obtain relevant and reliable audit evidence.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 505 in the audit evidence phase, that means evidencing: Auditor maintains control over the confirmation request — including the wording, dispatch, and receipt; Selection of the confirming party that is the appropriate source; Investigation of any exceptions identified.
