A5 (4) - Management Representation

Question 0

Requirements

Answer 0

1) . Letter is mandatory
2) . Date as same date of report
3) . Signed by CEO or CFO
4) . The client assert that all material matters have been adequately disclosed

Question 1

Purpose of rep letter

Answer 1

1) . To confirm representation explicitly or implicitly given to auditor
2) . To indicate and document the continuing appropriateness
3) . To reduce possibility of misunderstanding concerning matters in rep
4) . Written rep letter should include representation regarding matters affect recognition,measurement, or disclosure in the current period FS

Question 2

Contents - completeness of the information

Answer 2

1) . Completeness of availability of all minutes of meetings of shareholders and board.
2) . Communication from regulatory agencies concerning noncompliance with financial reporting.

Question 3

Contents - Recognition, measurement, and disclosures

Answer 3

1) . Uncorrected misstatements are immaterial
2) .Responsibility to design of detective and preventive programs
3) . Plant or intentions that may affect the carrying value or classification of assets and liabilities.
4) . Related parties transactions
5) .Guarantees for contingent liabilities.
6) .violations that my have effects on FS disclosures
7) .Unasserted claims advised by lawyer must be disclosed.
8) . Satisfactory titles of assets and assets pledged as collateral.
9) . Compliance with agreements that may affect the FS

Question 4

Contents - subsequent events

Answer 4

Information concerning subsequent events

Question 5

Contents - additional representation .

Answer 5

1) . Impact of new account principle
2) . Impairment of assets
3) . Obsolesce of inventory
4) . Retractions on cash
5) . Plans to discontinue line of business

Question 6

Contents - financial statements

Answer 6

1) Proper presentation of the financial statments.