Audit Confirmation Letter To Customer for the United Kingdom

Audit Confirmation Letter To Customer Template for England and Wales

An Audit Confirmation Letter to Customer is a formal document used in England and Wales as part of the external audit process. It serves as a third-party verification tool where auditors request customers of the audited company to confirm specific information about their business relationships, transactions, and outstanding balances. The letter is governed by UK audit standards and regulations, including the Companies Act 2006 and International Standards on Auditing (UK).

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What is a Audit Confirmation Letter To Customer?

The Audit Confirmation Letter to Customer is a critical component of the audit evidence gathering process under English and Welsh law. It is typically used when auditors need independent verification of accounts receivable, transactions, or other business relationships between their client and its customers. The letter helps ensure compliance with International Standards on Auditing (UK) and provides third-party assurance of financial statement accuracy. This document is particularly important for maintaining audit quality and meeting regulatory requirements in the UK jurisdiction.

What sections should be included in a Audit Confirmation Letter To Customer?

1. Letter Header: Including date, recipient details, and reference number

2. Purpose Statement: Clear statement of the audit confirmation purpose

3. Scope of Confirmation: Details of what is being confirmed and the relevant period

4. Financial Information: Specific financial details requiring confirmation

5. Response Instructions: How and when to respond to the confirmation request

What sections are optional to include in a Audit Confirmation Letter To Customer?

1. Legal Proceedings: Confirmation of any ongoing legal matters, used when relevant

2. Related Party Transactions: Details of related party dealings, used for larger organizations

3. Contingent Liabilities: Information about potential future obligations, used when applicable

What schedules should be included in a Audit Confirmation Letter To Customer?

1. Financial Statement Extract: Relevant extracts from financial statements requiring confirmation

2. Reply Form: Standardized form for customer response

3. Authorization Letter: If required, authorization from management to provide information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Confirmation Letter

Sector

Sales

Cost

Free to use
Industries

Companies Act 2006: Primary legislation governing company law in the UK, particularly sections relating to audit requirements and statutory audits

Financial Services and Markets Act 2000: Key legislation regulating financial services in the UK, including provisions relevant to audit services

Data Protection Act 2018 and UK GDPR: Legislation governing the handling and protection of personal data in audit processes

International Standards on Auditing (UK): Professional standards that govern how audits should be conducted in the UK

Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2008: Specific regulations regarding audit fee disclosure and liability agreements

Statutory Auditors and Third Country Auditors Regulations 2016: Regulations governing the conduct and requirements for statutory auditors in the UK

FRC Ethical Standard: Professional ethical requirements set by the Financial Reporting Council for auditors

FRC Audit Quality Framework: Framework establishing standards for audit quality and performance

ICAEW Code of Ethics: Professional ethical guidelines established by the Institute of Chartered Accountants in England and Wales

Financial Reporting Council (FRC) Guidelines: Regulatory guidance and requirements for audit practices issued by the FRC

ICAEW Requirements: Professional requirements and standards set by the Institute of Chartered Accountants in England and Wales

Financial Conduct Authority (FCA) Regulations: Regulatory requirements for audits of regulated financial services firms

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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