Balance Confirmation Letter Format — SA 505 External Confirmations
BALANCE CONFIRMATION REQUEST
[To be issued on the letterhead of {{client_name}}. Replies must be addressed directly to the auditor — not to the entity. Dispatch and follow-up remain under the control of the auditor (SA 505, para 7).]
Date: 20 July 2026
To,
{{party_name}}
{{party_address}}
Dear Sir / Madam,
Subject: Confirmation of balance as at {{as_at_date}} — for audit purposes
Our auditors, {{firm_name}}, are conducting the statutory audit of our financial statements for the year ended {{as_at_date}}. As part of their audit procedures under the Standards on Auditing, they request direct confirmation of the balance appearing in our books in your account.
According to our records, the balance in your account as at {{as_at_date}} is:
| Particulars | Amount (₹) | Dr / Cr |
|---|
| Balance as per our books as at {{as_at_date}} | {{balance_amount}} | {{balance_nature}} |
Kindly confirm directly to our auditors whether the above balance agrees with your records, by signing and returning the confirmation slip below (or by email) to reach them on or before {{reply_by_date}} at:
{{firm_name}}, {{firm_address}} · Email: {{auditor_email}}
If the balance does not agree with your records, please furnish a statement of your account for the year together with details of the difference. This letter is a request for confirmation of balance for audit purposes only — it is neither a demand for payment nor an admission of liability.
Thanking you,
For {{client_name}}
(Authorised Signatory)
Confirmation slip (to be returned directly to the auditor)
To: {{firm_name}}, {{firm_address}}
We confirm that the balance of ₹ {{balance_amount}} ({{balance_nature}}) due as at {{as_at_date}} in the account of {{client_name}}:
- AGREES with our records; or
- DOES NOT AGREE with our records — our balance is ₹ __________ (statement of account enclosed showing the difference).
Name: __________ Designation: __________ Signature & seal: __________ Date: __________
Annexure — Bank balance confirmation (adapt the same letter for banks)
For bank confirmations, address the request to the branch manager and ask the bank to confirm, as at {{as_at_date}}, ALL of the following directly to the auditor:
- Balances in every account (current, cash credit / OD, EEFC, escrow) with account numbers
- Fixed / term deposits with numbers, amounts, interest rates and maturity dates — and whether any are under lien
- Loans and facilities: sanctioned limits, amounts outstanding, security / charge details, and guarantees given on behalf of the entity
- Letters of credit and bank guarantees outstanding with amounts and expiry
- Securities, title deeds or other items held in safe custody
- Names of authorised signatories to operate the accounts
SA 505 notes for the audit file: (1) the auditor selects the parties, controls dispatch and receives replies directly; (2) a non-response to a positive request is NOT evidence — perform alternative procedures (subsequent receipts / payments, underlying invoices, correspondence); (3) evaluate exceptions for misstatement indicators; (4) management refusal to allow a confirmation must be evaluated for reasonableness, with implications for the risk assessment and, if unreasonable, for the auditor’s report (SA 705).
