inHong Kong corporate auditBank confirmation is a very important procedure. Auditors need to verify bank deposits (including zero balance accounts), transactions with financial institutions and information. Unless there is sufficient evidence that bank deposits (including zero balance accounts), transactions with financial institutions and information are not material to the financial statements and that the risk of material misstatement associated with them is low (depending on the auditor's professional judgment), this may not be verified.

Recently inHong Kong corporate auditDuring the process, I received the confirmation letter from the bank and found the discrepancy between the book balance and the confirmation letter. The reason for the discrepancy needs to be identified. Reason 1: The customer may have missed the record in the book. Reason 2: The customer's book balance is correct, but the bank's writing error during confirmation results in the inconsistency of the confirmation balance. In this case, the confirmation needs to be reconfirmed.

So inHong Kong corporate auditIn, if inconsistent items are found, they cannot be directly defined as misstatement, and the auditee should modify them. It is necessary to find out the reason, and modify them only if they are misstatement. Bank confirmation takes a long time, especially in the current epidemic, the time limit of express delivery to the auditor office in Hong Kong is affected, so the confirmation must be carefully checked to ensure that one confirmation is consistent, reduce unnecessary work.

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