Revision of Practice Alert 2003-1, Audit Confirmations, issued.

• Position: Accounting & auditing news

In 2003, the Professional Issues Task Force issued Practice Alert 2003-1, Audit Confirmations. The PITF has updated and revised the guidance in the Practice Alert, the result being a non-authoritative document that responds to practitioners' current concerns with respect to audit confirmations. The revised Practice Alert provides guidance to auditors of non-issuers and their firms regarding the following:

* Improving confirmation response rates.

* Negative vs. positive confirmation requests.

* Non-responses to positive confirmations.

* Responses to positive confirmation requests indicating exceptions.

* Use of electronic confirmations.

* Confirmations received via fax or electronically.

* Management requests not to confirm.

* Alternative procedures.

* Use of client personnel.

* Confirmation of accounts receivable.

* Confirmation of terms of unusual or complex agreements or...