Digital Balance Confirmation is a modern auditing process, leveraging electronic systems to verify financial data, particularly bank balances and transactions, ensuring reliability and accuracy in financial reporting.
In accordance with ICAI's Standard on Auditing (SA) 505, this method provides auditors with electronic external confirmations, complementing traditional paper-based or alternative mediums. These confirmations, requested from financial institutions, validate various financial instruments, including loans, investments, deposit and credit facilities, alongside instruments like guarantees and letters of credit.
PSB Alliance, in line with evolving auditing practices, facilitates the adoption of secure and efficient digital balance confirmation processes among its partner banks, streamlining audit procedures and enhancing transparency.