Confirmations from Third Parties

Where significant stocks of the entity are held by third parties, the auditor should examine that the third parties are not such with whom it is not proper that the stocks of the entity are held. The auditor should also directly obtain from the third parties written confirmation of the stocks held. Arrangements should be made with the entity for sending requests for confirmation to such third parties. Auditor should also consider AAS 30, “External Confirmation” when he has obtained confirmation from third parties.