As part of our audit testing procedures, we request banks to confirm directly to us the balances and other financial information on clients we audit. A case in point is Bank of Cyprus PLC, Nicosia, Cyprus asking EUR 100 per year to confirm the balances for a client. The client has stopped working with them and refuses to cover the fee which adds up a few years on the grounds of it being unreasonable.
In our view the bank fee indeed seems unreasonable or at least questionable, for other banks, the client operates with charge only EUR 50 /year. Our take, if we can not confirm the balances as ISA 505 guidance, is to issue a modified audit opinion with "limitation of scope".
Any thoughts very much appreciated.