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Audit Balance Confirmation Letter Template for Singapore

An Audit Balance Confirmation Letter is a formal document used in Singapore's audit process, governed by the Singapore Standards on Auditing (SSA) and overseen by ACRA. It serves as an external verification tool where auditors request third parties to confirm specific account balances, transactions, or arrangements with the audit client. The document follows strict regulatory requirements under Singapore's Companies Act and must comply with data protection laws under PDPA 2012.

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What is a Audit Balance Confirmation Letter?

The Audit Balance Confirmation Letter is a critical component of the external audit process in Singapore, providing independent verification of financial information. Used primarily during annual audits, this document enables auditors to obtain direct confirmation of account balances, transactions, and arrangements from third parties such as banks, customers, or suppliers. The letter must comply with Singapore Standards on Auditing (SSA 505) and is designed to enhance the reliability of audit evidence. It serves as a key control mechanism in verifying the accuracy of financial statements and detecting potential misstatements or fraudulent activities.

What sections should be included in a Audit Balance Confirmation Letter?

1. Letterhead Information: Auditor's firm details, letterhead, date, reference number and professional credentials

2. Recipient Details: Name, designation and address of the entity being requested for confirmation

3. Subject Line: Clear identification of the audit client and period under review

4. Balance Details: Specific amounts and accounts requiring confirmation as of the specified date

5. Response Instructions: Clear directions on how to complete and return the confirmation, including deadlines

6. Authorization Statement: Client's explicit authorization for the recipient to release information to auditors

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

1. Additional Account Details: Required when confirming multiple accounts or complex financial arrangements

2. Specific Transaction Details: Used when requiring confirmation of specific transactions within the period

3. Compliance Statements: Required for regulated entities or specific industry requirements under MAS guidelines

4. Confidentiality Notice: Additional privacy and confidentiality requirements under PDPA 2012

What schedules should be included in a Audit Balance Confirmation Letter?

1. Confirmation Form: Standardized form for the recipient to complete with balance confirmations

2. Account Statement: Detailed statement of accounts requiring confirmation

3. Authorization Letter: Separate authorization letter from the client when required by recipient

4. Reply Instructions: Detailed instructions for completing and returning the confirmation, including contact details

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

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Confirmation Letter

Sector

Sales

Cost

Free to use

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