Audit Confirmation Memo

Simply Soups Inc. has hired us at Putnam and Jacobs LLP, to perform a financial statement audit for the year ended December 31, 20CY. Using the proper proposed standards set forth by the PCAOB, we as the auditors were tasked with testing the cash balances reported by Simply Soups Inc. at year-end. With the addition of a proper trial balance, cash lead sheet, bank reconciliation testing summary, and key information related to the 6 banks, we need to ensure that the numbers being reported in the confirmations are materially correct. According to (PCAOB 2010b), confirming the Company’s cash balance with each bank generally provides reliable evidence, however, the confirmation process is subject to the risk of interception and alteration of confirmation responses. Therefore, the necessary steps are being taken when it comes to the receival of the bank balances. Through the learn.confirmation.com intermediary, we were able to establish our audit group, authorized signers, the 4 banks, and the 2 additional advanced banks with the necessary account information. Once we established each bank with the correct account ID, we needed direct special authorization from either authorized signers Lou Jennings or Chuck Rogers, or even both, prior to even starting the initial confirmations. Once we received the necessary authorization, we started the initial confirmations as of 12/31/20CY (2021). These steps are set in place as a deterrent and safeguard against interception of documents and fraud. Furthermore, they establish accuracy in information that needs to be provided such as bank information, emails, addresses, and much more, all of it being case sensitive. It’s critical as auditors to maintain control over the entire confirmation process.

Memo

Bank of citizens: 304,312.43

American Northwest Bank: 121,987.17

BNY Federal: 493,154.12

Fifth Federal: 508,219.33

Sparkasse-Frankfurt: 315,711.76

Tenth national (this was the out of network bank): 312,580.29

All 6 banks: initial confirmation denials based on “incorrect information entered.” Were corrected and processed for new confirmations.

Confirmations received and completed 5 banks gave us the exact amount and 1 bank required a reconfirmation and it gave us the correct amount

The exhibits 1-4 are given in the email case study towards the bottom. It will help us write out the memo and understand the results.

SOC3 report Only briefly mentioned on page 29, it also talks about it on step 4: obtaining an understanding of intermediary controls. It tells us how to access the report. I followed the instructions and went to the home page security tab section, but there is nothing there about SOC3 or downloading it.

Confirmation logs