What is the Concept of Circularization or External Confirmation Procedures in Auditing?

As part of their audit process, financial auditors implement various work that allows them to express their opinion on an entity’s annual accounts.

Among the audit procedures they design and perform, financial auditors carry out the circularization process also known as the «procedure of external confirmation».

External confirmation procedures are frequently performed for confirming or requesting 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).

As part of the digitization on the audit profession, and in application of the ISA* 505 “External Confirmations” (*International Standards on Auditing) standard, auditors can now use the secured and cloud-based platform, Circulariz.com to simplify external confirmations for everyone.

With Circulariz, Your Financial Auditor Takes Care of Things for You

Granting Permission in One Click

According to the ISA 505 standard, your financial auditor needs to ask you special permission concerning the third parties to request. On Circulariz.com, granting or refusing authorisation can be done in a single click.

Circularisation des comptes - demande de confirmation - Circulariz
Circularisation des comptes - demande de confirmation - Circulariz

Fill-in Third Parties Contact Details Effortlessly

If needed, you can complete the third-parties contact details in just few a seconds. Only the email address is mandatory for sending external confirmations.

Stay Up-to-Date on Responses

Your personal access will allow you to view third-party confirmation request responses in real-time. You will also be able to see who has responded to your financial auditor, and who has not yet responded.

Circularisation des comptes - demande de confirmation - Circulariz

Need help with your personal access?

To learn more, you can reach out to us from Mondays to Fridays, 9 AM and 6PM:

  • Phone: +33 490 564 233

  • Email: contact@circulariz.com