Definition of confirmation

1. verification of a condition or fact.
2. auditor's written or oral request to a third party to verify the existence or amount of a financial item related to the clients. A positive confirmation requests a reply in any event while a negative confirmation asks for a reply only in the event of disagreement. Examples are accounts receivable, accounts payable, and bank confirmations.

1. written communication to the counterparty reciting all the relevant details of a transaction, as agreed by telephone or telex.
2. audit function whereby a bank requests customers to verify account balances; a means of detecting deposit fraud. Positive confirmation requests that every balance be checked; negative confirmation requests a reply only if errors or account differences are found.
3. in bankruptcy, acceptance of a debt repayment plan by creditors.

1. formal memorandum from a broker to a client giving details of a securities transaction.
2. document sent by a company's auditor to its customers and suppliers requesting verification of the book amounts of receivables and payables. Positive confirmations request that every balance be confirmed, whereas negative confirmations request a reply only if an error exists.

1. formal memorandum from a broker to a client giving details of a securities transaction. When a broker acts as a dealer, the confirmation must disclose that fact to the customer.
2. document sent by a company's auditor to its customers and suppliers requesting verification of the book amounts of receivables and payables. Positive confirmations request that every balance be confirmed, whereas negative confirmations request a reply only if an error exists.

written affirmation presented by a broadcast media representative to an advertising agency confirming verbal statements made concerning the availability of commercial time on a particular station or network.