Bank confirmations that arrive late — and what to do meanwhile

Bank confirmation delays are the quiet villain of many March and December audits. The confirmation request leaves on time; the reply sits in a branch queue; your reporting deadline does not move.

Work we can still finish

While we wait, we can complete substantive tests on expenses, fixed assets, and payroll. We can also review reconciling items on the bank reconciliation itself — outstanding checks, deposits in transit, and unexplained differences.

What we cannot do is finalize cash assertions without either a confirmation or an agreed alternative procedure documented in the file.

Alternatives we sometimes use

With client permission, we may observe online banking balances in person, obtain cut-off statements, or expand testing of subsequent receipts and payments. Alternatives take judgment; they are not a shortcut to ignore the confirmation process.

Send confirmation letters early, follow up in writing, and tell us the moment a reply arrives. That coordination keeps the rest of the audit from idling.