Year-end balance confirmation means asking customers and suppliers to confirm in writing the balance between you at the financial year end. Select the accounts (by size and risk), send confirmation requests with a reply deadline, follow up non-responses, reconcile every disagreement line by line and keep the replies as audit evidence.
Checklist
- Freeze the year-end balance list after cut-off postings.
- Select accounts: all large balances, overdue and unusual accounts, a sample of the rest (agree it with the auditor if they send the requests).
- Verify contact persons and e-mail addresses before sending.
- Send positive confirmations (confirm or state your balance) with a reply deadline.
- Send reminders after one week; call those who still do not reply.
- For each “we do not agree”, obtain the counterparty's statement and reconcile.
- Summarise: confirmed, differences explained, not replied; keep all replies.
Positive or negative confirmation?
A positive confirmation asks the counterparty to reply in every case and is stronger evidence. A negative confirmation asks for a reply only if they disagree; silence is weak evidence. A blank confirmation leaves the balance out and asks the counterparty to fill it in.
Frequently asked questions
Can the company send audit confirmations itself?
For audit purposes the auditor normally controls sending and receiving. Companies run their own confirmations as well, to clean up balances before the audit.
Is e-mail confirmation acceptable?
Yes, if the reply comes from an authorised person and its origin can be verified; electronic confirmation platforms keep that trail.
Start with one account. If the differences are not clearer than in your spreadsheet, you have lost nothing.
Start free trial →Last updated: November 14, 2026 · mutabakat.com