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What is the purpose of a confirmation letter?

As mentioned, auditors send confirmation letters to third-parties. This could be a bank, lawyer or supplier. For example, a letter may be sent to a companys lawyers to determine whether theres any pending litigation that needs to be reported or disclosed in the companys audited financial statements.

What is an audit confirmation letter?

During the course of an audit, you may hear your auditors refer to something called a confirmation letter. This is a letter that your auditor will send out to third parties, such as banks or suppliers, asking them to confirm certain financial information.

Why am I getting a letter from the auditor?

If we conduct your audit by mail, our letter will request additional information about certain items shown on the tax return such as income, expenses, and itemized deductions. If you have too many books or records to mail, you can request a face-to-face audit.

What is the purpose of an audit letter?

An audit letter is a written request for information about a person or entity being audited, usually sent to an attorney, banker, or other relevant party. The letter asks for details about pending or threatened litigation that may affect the audit.

What happens if you ignore an audit letter?

What Happens if You Dont Respond to an IRS Audit Letter? If you ignore an IRS audit letter, the IRS may assume you agree with their proposed changes. This could result in additional taxes, penalties, and interest.

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