Confirmation is an audit procedure that involves obtaining evidence directly from a third party, such as customers, suppliers, or financial institutions. This procedure is vital for testing several key audit objectives. First, it addresses the objective of existence or occurrence by verifying that account balances, such as accounts receivable or payable, actually exist as of a particular date. For example, an auditor may send a confirmation letter to a customer to confirm the customer's outstanding balance with the company. Second, confirmation also helps in testing rights and obligations. This is done by obtaining independent confirmation of contractual terms, loans, or other agreements to ensure that the entity has legal rights to assets and is obligated for the liabilities recorded. Finally, confirmation supports the accuracy objective, as it provides assurance that the amounts recorded in the financial statements match what is reported by the third party, thus reducing the risk of misstatements. 5. Recalculation/Reperformance Recalculation and reperformance are audit procedures used primarily to test the accuracy and valuation objectives. Recalculation involves checking the mathematical correctness of documents or records, such as recalculating depreciation, interest, or payroll. By independently computing these figures, auditors can verify that calculations in the records are correct, directly addressing the accuracy objective. Reperformance involves the auditor indepe