Audit is a process in which a third party is hired in order to inspect accounts and financial statements of a company or organization. Audit confirmation letter is a formal notification that is sent to all the involved parties in the process. With this letter, the client can prepare their management for the audit where on the other hand, it gives specifics about the audit to the auditors.

Brief Description of Audit Confirmation Letter:

Audit is a very important and key part of any organization and it doesn’t only mean financial audit but it can be of any kind. For example, in a textile company, the customer sends a third party as an external auditor. This team visits the production units, check the quality of the prepared garments and verify if the garments are made with the specification signed by the company in the initial agreement. On the other hand, financial audit is a little complicated as compared to other types of audits. In this audit, the external auditors check accounts receivable and payable of a company in order to make sure there is no mistake or error in the financial statements. Multinational companies that have dozens of offices around the world hire external auditors because it’s not possible for the owner or partners of the company to physically be at every branch and they can’t either rely on the management completely. In order to make sure that everything is running smoothly, they send auditors to their companies.

Before any audit, a notification is sent both to the management of the company and the auditing team. On one hand, this gives a guideline to the management about what the auditors will check during their visit and what kind of documents they will require. This way the management has enough time to prepare for the audit. On the other hand, this notification or audit confirmation letter is also sent to the auditors. With this letter, they confirm the date, time, place and duration of the audit. This letter also includes the specification of the audit along with the kinds of details that will be provided to the auditors during their visit.

Sample Audit Confirmation Letter

From:

Jane Smith

Managing director

Super natural fabrics international

HQ London

To:

William Orland

General Manager

Production unit

Super natural fabrics international, Ohio

Date: 27 August, 2015

Subject: Audit Confirmation Letter

 

Dear Mr. Orland,

Please consider this letter as the official and formal notification of the upcoming audit of your production unit on 12th of September, 2015. We have hired a third party who will conduct this audit and will prepare reports on their findings.

As you can understand, the key purpose of this audit is to make sure that the production unit is up to its full capacity and the production managers are making sure the unit is giving maximum output. Along with that, the auditors are also asked to inspect the packaging and shipment process of the finished goods. The auditors will also ask you to present some of the finished samples of our running orders in order to check the quality of the fabrics. Please be advised that you are required to fully cooperate with the auditors during their visit.

Please reply with acknowledgement of this confirmation letter.

Regards,

Jane Smith

Managing director

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