Prepare bank information for an auditor's confirmation request

Obtain the auditor's requested confirmation date, scope and submission method before preparing a list. The request may extend beyond operating-account balances to borrowing, guarantees, collateral or other banking relationships. Include accounts opened or closed during the period when requested. A list copied from the current online dashboard can omit a relationship relevant to the audit date.

PCAOB AS 2310, which applies within the PCAOB audit framework, addresses evidence obtained from knowledgeable external sources and the auditor's control of confirmation. Other engagements follow their own standards and procedures. Let the engagement team specify its requirements rather than assuming every audit uses the same form or bank platform.

Prepare account identifiers, legal account holders, currencies, branch or relationship details and the relevant balances. Compare the register with the general ledger, debt schedule and legal agreements. Investigate accounts that exist at the bank but not in the ledger, and ledger accounts that no longer appear in the current portal.

List borrowing arrangements and any account restrictions separately from ordinary deposits. Include the supporting agreement reference and responsible contact. Do not describe unused borrowing capacity as cash. If a bank relationship belongs to another group entity, identify that entity explicitly so the auditor can determine how it relates to the engagement.

Keep the register in a secure location and share it through the approved audit channel. Use the complete identifiers only where the process requires them. A general progress tracker can use masked account details while pointing to the restricted evidence.

Identify the company representative authorized to approve the bank's release of information. Ask the auditor and bank what signature or electronic authorization they need, then track completion. Confirm that the representative can access the relevant process before the request deadline. An unsigned authorization can delay a request even when all balances are reconciled.

The PCAOB standard requires the auditor to control the selection, sending and receipt of confirmations. Support that independence. Do not intercept a response, edit the bank's answer or send a company-prepared replacement as though it came from the bank. If the bank contacts finance with a procedural question, route it according to the auditor's instructions.

Keep a tracker of requested authorizations, completion dates and outstanding procedural items. The tracker should help the team remove administrative delays while leaving the auditor responsible for evaluating the evidence and deciding whether other procedures are needed.

A confirmed bank balance may differ from the book balance because of documented reconciling items or because the bank's response reveals an error. Provide the reconciliation, outstanding-item details and subsequent settlement evidence requested by the auditor. Avoid entering a journal simply to make the ledger equal the confirmation without understanding the difference.

For an unfamiliar fee, restriction or debt term, obtain the relevant bank document and involve the accounting or legal adviser. Correct the company's records when supported, with a clear audit trail and review. Keep unresolved differences visible until the engagement team has received the explanation it needs.

After the process, update the account register for verified omissions or obsolete information. Retain the company's preparation records under its document policy. Ask the auditor which final materials belong in the client file rather than assuming that the business owns or should circulate the auditor's entire working-paper set.