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Stock Confirmation Letter For Audit for Singapore

Stock Confirmation Letter For Audit Template for Singapore

A Stock Confirmation Letter for Audit is a formal document used in Singapore to verify and confirm an entity's inventory holdings as part of the statutory audit process. This document, governed by Singapore Standards on Auditing and the Companies Act, provides independent verification of stock quantities, values, and locations at a specific date. It serves as crucial audit evidence and forms part of the company's compliance with Singapore's financial reporting requirements.

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What is a Stock Confirmation Letter For Audit?

The Stock Confirmation Letter For Audit is a critical component of the audit process in Singapore, required under the Singapore Standards on Auditing (SSA) and Companies Act. It is typically requested by external auditors during annual statutory audits to obtain independent confirmation of a company's inventory position. The document provides detailed information about stock quantities, values, locations, and ownership status as of a specific date. This confirmation serves as primary audit evidence and helps ensure compliance with Singapore's stringent financial reporting and audit requirements. It's particularly important for companies with significant inventory holdings and those subject to statutory audit requirements.

What sections should be included in a Stock Confirmation Letter For Audit?

1. Letter Header: Company letterhead, date, reference number, and addressee details

2. Purpose Statement: Clear statement that this is a stock confirmation for audit purposes

3. Stock Details: Inventory quantities, values, and locations as of specific date

4. Confirmation Statement: Express confirmation of stock quantities and values

5. Authority Statement: Confirmation of authority to provide this information

6. Signature Block: Authorized signatory details and company stamp

What sections are optional to include in a Stock Confirmation Letter For Audit?

1. Stock Movement Details: Information about recent significant stock movements - used when requested by auditors or for high-value inventory

2. Third Party Stock Declaration: Declaration of stock held by third parties - used when company holds stock at external locations

What schedules should be included in a Stock Confirmation Letter For Audit?

1. Stock Listing Schedule: Detailed inventory listing with quantities and values

2. Location Schedule: List of storage locations and corresponding stock quantities

3. Valuation Certificate: Supporting documentation for stock valuation methods

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Confirmation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions

























Clauses



















Industries

Companies Act (Chapter 50): Primary legislation governing corporate entities in Singapore, covering requirements for maintaining proper accounting records, statutory requirements for audits, and directors' responsibilities regarding company records

Singapore Financial Reporting Standards (SFRS): Financial reporting framework that sets out inventory valuation requirements, disclosure requirements, and measurement criteria for financial statements

Singapore Standards on Auditing (SSA): Professional standards including SSA 501 (Audit Evidence), SSA 505 (External Confirmations), and requirements for audit documentation

Accountants Act (Chapter 2): Legislation establishing professional standards for accountants and audit requirements in Singapore

Singapore Stock Exchange (SGX) Rules: Regulatory requirements for listed companies including disclosure requirements and reporting obligations

Evidence Act (Chapter 97): Legislation governing requirements for documentary evidence and admissibility of electronic records in Singapore

Personal Data Protection Act (PDPA): Law governing the collection, use, and disclosure of personal data in business documents and transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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