As outlined in paragraphsand, in the context of this Guidance Statement, paper-based confirmations refers to confirmation procedures which do not use a technological resource to automate the entire, or part of, the confirmation process.

In consultation with the Australian Bankers’ Association (ABA), the AUASB previously developed three standard paper-based bank confirmation request forms. The forms are:

Appendix 1 – Bank Confirmation—Audit Request (General) – the information to be confirmed or requested relates to normal banking activities and is substantially the same for a range of entities;

Appendix 2 – Bank Confirmation—Audit Request (Treasury and Other Operations) – the information to be confirmed or requested relates to the entity’s treasury operations and use of treasury management instruments; and

Appendix 3 – Example letter – Customer Request and Authority to Disclose Information.

These forms are also available as separate documents on the AUASB website, to facilitate their use in the confirmation process, if required.

While the standard bank confirmation request forms will generally provide the information required by the auditor in a range of audit engagements, there may be instances where the standard forms are not appropriate. For example, the auditor may require confirmation of matters not covered by the standard bank confirmation request forms and may write a separate letter requesting confirmation of specific matters.

When using paper-based bank confirmations, the auditor maintains control over the process through:

determining the bank information to be requested;

selecting the appropriate confirming party(parties);

designing the bank confirmation request, ensuring that it:

is properly addressed;

is clear, accurate and sufficiently detailed; and

contains an accurate return address, for responses to be sent directly to the auditor.

considering the timing of the lodgement of the request and the date by which a response is required; and

taking follow-up action when a response is overdue.