When KTP is asked 3000 times "Why my friend's auditor or my ex-auditor don't do audit confirmation for every universe?" Read the full story in our blog https://lnkd.in/gMa6MXa7 𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru 𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲) An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients Website www.ktp.com.my Instagram https://bit.ly/3jZuZuI Linkedin https://bit.ly/3sapf4l Telegram http://bit.ly/3ptmlpn 𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐁𝐨𝐨𝐤-𝐊𝐞𝐞𝐩𝐢𝐧𝐠/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲) A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource book keeping and payroll services to clients Website www.thks.com.my Facebook https://bit.ly/3nQ98rs

1. #AskKTPAudit 13/05/22
Why does my auditor have to send out
the confirmation to my customer,
don’t they trust me??
ISA 505 - External confirmation

2. #AskKTPAudit 13/05/22
First,
what is external confirmation?

3. #AskKTPAudit 13/05/22
What is external confirmation?
External confirmation is the process of
obtaining and determining audit evidence via
a third-party representation of information
directly.

4. #AskKTPAudit 13/05/22
So,
When auditor has to send it?

5. #AskKTPAudit 13/05/22
Auditor sends the confirmation when
they need to verify :
 Bank balances and
other information from
bankers
 Account receivables
and payables
balances
 Loan from
lenders

6. #AskKTPAudit 13/05/22
Auditor sends the confirmation when
they need to verify :
 Investments purchased
from stockbrokers but
not delivered at the
year ended
 Property title deeds
are held by lawyers or
financiers for safe
custody or security

7. #AskKTPAudit 13/05/22
Sometimes,
the auditor doesn’t use audit
confirmation

8. #AskKTPAudit 13/05/22
When not to use audit confirmation?
 When defining
any unrecorded
liabilities from
suppliers
 When confirming
the valuation of
goods held on
consignment
 When examining
the debtors’ ability
to pay the
outstanding
balances
 When the information
is not adequately
addressed by
confirmation

9. #AskKTPAudit 13/05/22
So don’t ask KTP why send audit
confirmation ?

10. #AskKTPAudit 13/05/22
Or
My friend’s auditor don’t send any
confirmation for every universe