Here at Audit Sight, we have worked to make the confirmation process as seamless as possible.
In this article, you will find a step-by-step guide on how to create a new confirmation and some helpful tips along the way.
On the Templates tab, click “Create new” in the top right corner of your screen.
First things first, what kind of confirmation are we running for your engagement?
Helpful Tip: Whether it’s Accounts Receivable, Cash, Legal, Accounts Payable, or confirmation of another account, make sure you differentiate between a “positive confirmation” or “blank confirmation” and include this in the name of the template. Also, make sure you include detail of the level of confirmation, whether it's the whole AR balance at the customer level or at the invoice level.
What is the difference between positive and blank?
- Positive Confirmation: Requests the verifier (responder/recipient) whether he or she agrees with the information stated on the request
- Blank Confirmation: (Another form of a Positive Confirmation); Does not state the amount (or other information) on the confirmation request, but requests the verifier (recipient) to fill in the balance or furnish other information including account number, invoice number, or other details.
Whichever one you are completing,
Have your firm’s standard confirmation template handy!
This standard template will be used to format our automated confirmations. This way, the confirmations sent to verifiers will be in your firm’s standard format.
Look through the standard confirmation to note where the “blanks” or “inputs” are- this is where Audit Sight Dynamic Data fields will come into play.
For example, on the Cash Confirmation template below, it notes “We have provided to our accountants the following information as of the close of business on [blank],”....
In this case, the confirmation date will be input into this blank.
Helpful Tip: Typically, the cash confirmation will be similar to the AICPA standard template, which can be found here: AICPA Standard Cash Confirmation
Next Step: Inputting the Confirmation into the Template
Think about the confirmation in 2 pieces:
- Confirmation request: This is the piece that the “Authorized Signer” (aka: Your client contact) will complete
- Verifier response: While they will receive the Confirmation Request portion, this is the piece that the Verifier (Bank, etc.) will ultimately confirm for the audit testwork
Find more information on verifiers, see the following articles:
Verifying who is completing the confirmation
Step 3 Completing the Verifiers Information
Copy the information from the standard template into the text boxes.
Where the aforementioned “blanks” or "inputs" are, drag the respective field over into the text box.
Next Step: Formatting the Items to be Confirmed
Helpful Tip: Depending on the type on confirmation, you will insert the tables on the Verifier Response tab.
- If the confirmation is in the “Positive confirmation” form (i.e. the verifier will agree or disagree with the details you note on the request), you will need to add the "table of data to be confirmed". This table will be uploaded with the cells completed.
- If the confirmation is in the “Blank confirmation” form (i.e. the verifier will input the amounts and details), you will need to add the “table to be input”. This table will be uploaded with blank cells so that the verifier can return the amount and details.
When the "Table of data to be confirmed" is inserted into the text box, it will show the Confirmation table place holder:
After the template is published and your confirmations are prepared, the audit team will upload the items that will fill in the "blanks". For the tables of data seen on the Verifier response tab, the audit team will upload Excel templates to the Audit Sight platform.
For confirmations which include an optional short text or paragraph response from the verifier, insert these Dynamic Data fields from the left-hand side.
For example, see the Positive AR Confirmation template below:
The bottom portion (starting with To: ___ ) begins the “Verifier’s Response” portion. We have reformatted the sentence to confirm the balance into a confirmation table. Then, we have added in the optional paragraph response.
What if an input I need isn't listed on the Dynamic Data field list?
When working with different firm templates, there may be a few items that might not be listed in the Dynamic Data fields listing. Mainly, we see these with Letters to Attorneys or Legal Counsel.
When sending confirmations to legal counsel, the request typically inquires of litigation or activities over a certain dollar threshold (usually in relation to materiality).
In this case, scroll to the bottom of the fields on the left-hand side of the page.
Click “+ Add new”
Type in the new field you want to create
Your new field is now ready to be input into the confirmation request
Once your confirmation includes the required fields and any other fields you need, hit Save and Publish for the Confirmation Template to become available for use!
(Don't worry, you can come back and make changes after hitting Publish).
Helpful Tip: until the required fields are input, the confirmation template won’t save!
