Field Notes ·
Bank Confirmations Still Matter for Mid-Size Groups
Why confirmation timing and account selection remain central to cash testing, even when most balances look routine.
Electronic statements make cash look easy to test. Confirmations still matter because they ask the bank—not only your ledger—to report balances, facilities, and guarantees as of the balance sheet date.
For mid-size groups, select accounts with material balances, new facilities, and any account that shows unusual activity near year-end. Include dormant accounts if guarantees or set-off rights might exist. Send requests early; Japanese banks can take weeks during peak season.
Track outstanding confirmations in the same log as other queries. If a bank does not respond, alternative procedures—subsequent statements and reconciling items—must be documented before the report date.
Related-party cash pools deserve special care. Confirm both the subsidiary balance and the parent’s corresponding liability so intercompany eliminations rest on third-party evidence where possible.