Published by: S&B Advisors and Consultants (Private) Limited

Author: Dr. Batool Darukhanawalla
Date: August 16, 2025

In an era where both environmental stewardship and audit integrity carry heightened importance, electronic confirmation technology, replacing paper-based verification with secure digital systems, is transforming audit practices globally. Organizations of all sizes can benefit from enhanced sustainability and audit quality.

1. Cutting Paper, Boosting Green Credentials

Traditional paper confirmations like mailed letters or printed forms, generate waste, slow processes, and risk misplacement. Digital confirmations eliminate physical correspondence, significantly reducing environmental impact while improving operational efficiency.

2. Smarter Data, Sharper Insights

Digital confirmations are machine-readable and highly structured, empowering auditors to:

• Detect unusual patterns and anomalies more accurately.
• Identify inconsistencies or fraud faster.
• Uncover risk areas that manual review might miss.
  This shift marks a move away from checklist reviews to proactive, data-driven audit strategies.

3. Elevating Audit Quality and Transparency

By automating tracking, reconciliation, and follow-ups, electronic confirmations reduce manual workloads and bolster transparency. Digital audit trails provide robust evidence, enhancing stakeholder confidence.

4. Aligning with ESG Principles

ESG considerations are now integral to corporate governance. Implementing electronic confirmations signals commitment to sustainability and aligns audit efforts with broader environmental goals positioning organizations as forward-thinking in ethical business practices.

5. Making the Transition to Digital Confirmations

A successful transition involves:

• Process Assessment: Identifying paper-heavy procedures.
• Technology Selection: Choosing secure, compliant platforms.
• Training & Integration: Empowering teams for smooth adoption.
• Continuous Monitoring: Ensuring compliance and refining workflows.

6. Global Adoption Trends: Data Driven Insights

• Rising global use: Research indicates significant increases in electronic confirmation usage both in the U.S. and internationally, with reconfirmation error rates dropping below 2%. (Source:https://publications.aaahq.org/jis/article-abstract/35/3/1/972/An-Exploration-of-Bank-Confirmation-Process?redirectedFrom=fulltext&utm)
• Smaller firms following suit: While large audit firms led the digital wave, small and mid-sized firms are increasingly adopting digital confirmation platforms. Surveys reveal that small firms still use postal mail more than twice as much as digital methods, but the preference is clearly shifting.
  (Source:https://www.cpa.com/sites/cpa/files/media/resources/whitepapers/welcome-to-the-new-era-of-audit-confirmation-cpacom-ebook.pdf?utm)
  
• Efficiency gains: Users of digital platforms report meaningful time savings. A study found that 14% of audit team members save over six hours per week per full-time employee, while around 60% save less than three hours weekly. (Sourse:https://www.us.confirmation.com/hubfs/Ebook_New-Era_US.pdf?utm)

These findings underscore the tangible benefits of digitizing confirmation processes faster workflows, fewer errors, and growing appeal across firm sizes.

Conclusion

Electronic confirmation technology is more than a technological upgrade, it’s a strategic move toward sustainability, operational efficiency, and higher audit quality. As adoption grows globally, including among smaller firms, this digital transformation represents a forward-looking, responsible approach to audit practice.