The Supplier Balance Confirmation Letter For Audit Purpose is a critical document used in German business operations to verify the accuracy of accounts payable balances during external audits. This document is typically issued at fiscal year-end or during specific audit periods, requesting suppliers to confirm or dispute the stated account balances. Under German accounting regulations and audit requirements, particularly the Handelsgesetzbuch (HGB) and IDW Auditing Standards, such third-party confirmations are essential for providing independent verification of financial statements. The letter includes specific balance amounts, relevant dates, and transaction details, serving as an important audit evidence and contributing to the overall accuracy and reliability of financial reporting.

1. Letterhead and Date: Company letterhead of the auditor/company requesting confirmation, including full address and date

2. Recipient Details: Full name and address of the supplier being asked to confirm the balance

3. Reference Line: Including audit period, account references, and any relevant reference numbers

4. Subject Line: Clear indication that this is a balance confirmation request for audit purposes

5. Opening Paragraph: Introduction stating the purpose of the letter and identifying the auditor

6. Balance Statement: Clear statement of the balance amount to be confirmed, as of the specific date

7. Response Instructions: Clear instructions on how to confirm or dispute the balance

8. Confidentiality Statement: Statement about the confidential nature of the communication

9. Signature Block: Space for authorized signatory, including title and company name

10. Response Section: Designated area for supplier's confirmation or dispute of the balance