To complete the AICPA Standard Form to Confirm Account Balance Information with Financial Institutions, fill in the top half using the client’s bank records, have an authorized signer on the account sign the authorization line, and send the form directly from your firm to the bank’s confirmation department. The bottom half is for the bank to complete and return. The form is a free fillable PDF available from the AICPA-CIMA website and is jointly approved by the American Bankers Association, the AICPA, and the Bank Administration Institute.1AICPA & CIMA. Standard Form to Confirm Account Balance Information with Financial Institutions
Which Sections You Fill In and Which the Bank Fills In
The form has two halves. The top is for the auditor to complete on behalf of the client, using information from the client’s general ledger and bank statements. The bottom is for the financial institution to complete and return, confirming whether the customer’s figures agree with its records and noting any exceptions.2American Institute of Certified Public Accountants. AICPA Standard Form to Confirm Account Balance Information The form states that the bank is not conducting a comprehensive search of every record, but any additional accounts that surface during the normal response process should be noted.
Getting the split wrong is the most common structural mistake. Leave the bank’s fields blank for them, and fill every field that belongs on the customer side.
Completing the Customer Section
Every field the auditor enters is a data point the bank will match against its systems. Accuracy at this stage decides whether the form comes back completed or denied.
Header Information
Enter the financial institution’s full legal name and mailing address, using the name exactly as it appears on the client’s bank statements. Informal names or abbreviations can cause the bank’s processing department to reject the request. Enter the confirmation date as “as of the close of business on [date].” For most year-end audits, this is December 31. That date freezes the balances the bank will report, so it must match the fiscal period under review.2American Institute of Certified Public Accountants. AICPA Standard Form to Confirm Account Balance Information
The form asks for the accountant’s return address so the bank knows where to send the completed response. Use the audit firm’s address, not the client’s. Responses routed to the client defeat the purpose of independent verification.
Section 1: Deposit Accounts
For each deposit account the client holds at the institution, enter the account number, account name, interest rate, and balance as of the confirmation date. Include every deposit account: checking, savings, money market, and certificates of deposit. Transcribe account numbers directly from bank statements rather than from the client’s internal records, because internal systems sometimes truncate or reformat numbers. A single transposed digit gives the bank’s system nothing to match against, and the request comes back denied.2American Institute of Certified Public Accountants. AICPA Standard Form to Confirm Account Balance Information
Section 2: Loan Accounts
Section 2 captures direct liabilities: any loans the client owes to the financial institution. Each loan entry requires the account number or description, balance, date due, interest rate, date through which interest has been paid, and a description of collateral securing the loan. This section matters especially where the client has credit lines, term loans, or mortgages that affect the balance sheet. If the client has no outstanding loans at the institution, leave the section blank or note “none.”2American Institute of Certified Public Accountants. AICPA Standard Form to Confirm Account Balance Information
Getting the Right Signature
No bank will process the form without the client’s signature. Federal privacy rules restrict financial institutions from sharing nonpublic personal information with nonaffiliated third parties, and an auditor qualifies as a third party.3Federal Deposit Insurance Corporation. Privacy Rule Handbook The “Customer’s Authorized Signature” line at the top of the form, along with the title field beside it, is what lifts that restriction for this specific request.
The signer has to be someone the bank recognizes as authorized on the account. In practice, that means the person listed on the institution’s signature card or authorized through a corporate resolution. Using a signer whose authority has lapsed, such as a former CFO or a departed partner, is one of the fastest ways to trigger a denial. Before preparing the form, confirm with the client which individuals currently have signing authority at each institution. The auditor prepares the form; the client signs it. That division is deliberate: the auditor controls the process, and the client provides the legal permission the bank requires.
Sending the Form to the Bank
Under AU-C Section 505, the auditor maintains control over every step of the confirmation process: choosing what to confirm, selecting the confirming party, designing the request, and sending it.4Public Company Accounting Oversight Board. Comparison of New Proposed Standard AS 2310 with ISA 505 and AU-C Section 505 The client should never mail the form or initiate the electronic submission. If the client handles delivery, the evidence loses its independence and the resulting confirmation may be worthless for audit purposes.
One practical implication: verify the bank’s confirmation address independently rather than using the address the client provides. Look up the institution’s confirmation department through the bank’s own website or a trusted directory, not the client’s letterhead or bank statements.
Paper Mailing
For a paper submission, mail the signed form directly to the bank’s confirmation or operations department. Include a self-addressed, stamped return envelope so the bank can send the completed form back to the audit firm. Paper confirmations historically take between 21 and 40 days for a round trip, with high rates of lost mail and errors along the way.5Confirmation.com. Confirmation.com: Secure Confirmation Clearinghouse
Electronic Confirmation Platforms
Most large firms now use electronic platforms such as Confirmation.com, which connect auditors and financial institutions through a secure portal. Average turnaround has fallen to roughly one day on these platforms, compared with weeks for paper.6Confirmation.com. Electronic Audit Confirmations Improve Turnaround Time by 95 Percent The auditor uploads the signed authorization, enters the account details, and submits the request digitally. The bank responds within the same platform. Per-request fees vary by platform and institution, so check the provider’s current fee schedule before budgeting a large engagement with dozens of confirmations.
Common Reasons Banks Deny Requests
When a bank cannot process a confirmation, the reasons usually fall into a short list:7Confirmation.com. Denying a Confirmation for Bank Users
- Invalid client company name. The entity name on the form doesn’t match the bank’s records. Check the exact legal name, including any “Inc.,” “LLC,” or “d/b/a” designations.
- Invalid account number. A transposed or truncated number the bank’s system can’t locate.
- Invalid account name. The account is registered under a different name than what appears on the form, common with subsidiary accounts or accounts recently transferred in a merger.
- Invalid client contact name. The authorized signer isn’t recognized by the bank.
- Not accessible by this department. The confirmation was routed to the wrong branch or department within the institution.
Most denials come down to data-entry errors that are fixable. When a request bounces, correct the specific field the bank flagged and resubmit rather than starting over.
After the Form Is Sent
The bank’s confirmation or compliance department compares the deposit and loan details you provided against its core banking systems as of the date on the form. If everything matches, the bank signs the bottom portion, confirming agreement with the customer’s data. If the bank finds discrepancies, such as a balance that doesn’t match, an account number that doesn’t exist, or accounts the customer didn’t list, it notes those in the exceptions section or the additional-information area at the bottom.2American Institute of Certified Public Accountants. AICPA Standard Form to Confirm Account Balance Information
If the bank doesn’t respond at all, silence cannot be treated as agreement. AU-C Section 505 requires alternative audit procedures for every nonresponse to a positive confirmation request.4Public Company Accounting Oversight Board. Comparison of New Proposed Standard AS 2310 with ISA 505 and AU-C Section 505 Send a follow-up request first. If that also goes unanswered, alternative procedures for deposit accounts typically mean examining subsequent bank statements and tracing cash receipts and disbursements after the confirmation date. For loan accounts, an auditor might review subsequent payment records, inspect the original loan agreement, or obtain a bank statement showing the outstanding balance. These procedures need to address the same assertions the confirmation was designed to verify, primarily that the accounts exist and the reported balances are accurate.8Public Company Accounting Oversight Board. AS 2310: The Auditor’s Use of Confirmation
January and February are peak season for year-end confirmations, and bank departments handling these requests can get overwhelmed. Sending requests early in the cycle, or using an electronic platform, reduces the chance of needing alternative procedures at all.