What is a Positive Confirmation?

A positive confirmation is an inquiry made by an auditor to a third party that requires a response. The inquiry is in regard to whether the third party's records match those that the auditor is examining. The auditor usually provides a numeric balance in the confirmation, which is the amount stated in the client’s records. A variation on the concept is the “blank” confirmation, where no numeric balance is provided; instead, the auditor requests that the third party write its own balance in the confirmation document.

Even if there is a match, with no exceptions, the auditor still requests a response. Positive confirmations are usually associated with the audit of receivables, payables, and debt arrangements.

Positive Confirmation vs. Negative Confirmation

The other type of confirmation is a negative confirmation, where the third party only has to respond if there is a discrepancy between its records and those contained within the confirmation document. A positive confirmation is considered to represent a higher quality of evidence than a negative confirmation, since the auditor receives explicit evidence from the third party.