Accounts Receivable and Accounts Payable Confirmations
According to the International Standards on Auditing (ISA) and especially the ISA 505 «External Confirmations» standard, auditors carry out a «circularization» process, more commonly known as «external confirmation procedures».
External confirmation procedures are frequently performed to confirm, or request information regarding account balances and their elements.
Debtors to a company are asked to confirm outstanding amounts (positive circularization) or to reply if the amount stated is incorrect, or in dispute (negative circularization)
External confirmations may also be used to confirm certain terms of agreement, contracts, or transactions between an entity and other parties, or to confirm the absence of certain conditions, such as a «side agreement».
As part of the digitization on the audit profession, and in application the ISA 505 “External Confirmations” standard, auditors can use the secure and cloud-based platform, Circulariz.com and simplify external confirmations for everyone.
You’ve received a confirmation request? Do you need help to respond?
To learn more, you can reach out to us from Mondays to Fridays, 9 AM and 6PM:
Phone: +33 490 564 233
Email : email@example.com