External Confirmations - Completed

  • External Confirmations - Completed

    Project Status

    Project Completed.


    James Gunn

    Task Force

    Craig Crawford, Chair
    Josef Ferlings, Member
    Simon Hancox, External member (Aus)
    John O'Brien, INTOSAI
    David Swanney, Member

    Objective(s) of project

    To revise ISA 505, External Confirmations.

    The IAASB approved ISA 505 (Revised and Redrafted), External Confirmations in September 2008. The ISA is effective for audits of financial statements for periods beginning on or after December 15, 2009. A Basis for Conclusions provides background to the project, main comments received on the exposure draft, and the IAASB's conclusions regarding these comments in developing the final standard.


    Recent experience has indicated that external confirmations may not always be as reliable as expected as audit evidence. As a result, some stakeholders believe that more rigorous requirements governing the use of external confirmations by the auditor are required. At the same time, others have questioned whether external confirmations are in fact an effective audit technique in obtaining relevant and reliable audit evidence.

    In December 2005, the IAASB commenced a project to revise the standards and guidance in extant ISA 505, addressing the auditor's use of external confirmations within the context of the audit risk model.

    Task Force progress / Board discussions to date

    The IAASB discussed and approved the project proposal at its December 2005 meeting.

    Issues papers were presented and discussed at the September 2006 and February, July and September 2007 IAASB meetings.

    The IAASB approved the exposure draft of proposed International Standard on Auditing (ISA) 505 (Revised and Redrafted), External Confirmations in September 2007.

    The IAASB considered significant comments received on the exposure draft, and the Task Force's recommendations, at its June 2008 meeting.

    The IAASB approved ISA 505 (Revised and Redrafted), External Confirmations as a final standard in September 2008. The ISA will be published after the Public Interest Oversight Board has confirmed that due process was followed in its development.

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