What it is
AU-C 505 requires the auditor to keep control over the confirmation process: select the items, send the requests, receive the replies directly and follow up. A log makes that control visible and shows what was done about every non-response and exception.
This workbook tracks each confirmation from selection to resolution across receivables, payables, banks, debt and other parties, with differences, exception reasons and alternative procedures calculated and totaled.
When to use it
- On any audit with external confirmations: bank, receivable, payable, debt, legal or other.
- To evidence the auditor’s control over sending and receiving.
- To summarize results and the coverage achieved for the conclusion.
What’s inside
- Setup: confirmation date and selection basis, with population totals entered on the summary
- Log: party, type, form (positive / negative), balance per books, sent, second request, received, balance per reply, difference, exception, resolution and alternative procedures
- Summary: items sent and received, response rate, value confirmed, coverage and unresolved items
- Check cells for items without a type, replies with no balance, replies not returned directly and unresolved exceptions
Standard cited
This template follows AU-C 505. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 505 explained.
Questions
What must I do if a party does not reply to a positive confirmation?
AU-C 505 requires alternative procedures to get the evidence the confirmation was meant to provide, such as examining subsequent cash receipts and shipping documents for receivables, or subsequent disbursements and vendor invoices for payables. Record what was done.
What if management asks me not to confirm?
AU-C 505 has the auditor ask why, evaluate the reasons and seek audit evidence on their validity. If the request is not valid, or alternative procedures do not provide sufficient evidence, the auditor communicates with those charged with governance and considers the effect on the audit and the report.
Are negative confirmations enough?
Rarely on their own. AU-C 505 does not allow negatives as the only substantive procedure unless the risk of material misstatement is assessed as low and evidence on the operating effectiveness of relevant controls has been obtained, the population is many small homogeneous balances, a very low exception rate is expected and there is no reason to think recipients will disregard the request. They give less reliable evidence than positives.
Related templates
- Accounts Receivable Confirmation Letter (Positive)
- Accounts Payable Confirmation (Vendor Statement Request, AU-C 505)
- Bank Confirmation Letter (AU-C 505)
Last updated 11/04/2026. All free templates.