A8 Written Representation

Question 1

Written Representations

Answer 1

Created to provide the auditor with information which cannot be obtained otherwise, & support the other audit evidence. These are usually obtained at the conclusion of the audit & covers the entire audit period.

Question 2

Key Written Represntations

Answer 2

These include FS fairness which encompasses acknowledgement & compliance statement from mgmt, completeness of information and disclosures of significant deficiencies, recognition & measurement, fraud & noncompliance with laws/regulation, unasserted claims & litigation, going concern issues, subsequent events, & additional representations if needed.

Question 3

Categories of Representation Letter

Answer 3

The representation letter typically includes information in4 categories, FS, disclosures & subsequent events, recognition & measurement, & completeness.

Question 4

Not Included in Representation Letter

Answer 4

Any statement regarding sufficiency of audit evidence related to the issuance of an audit opinion. The sufficiency of audit evidence and type of opinion to be rendered is determined by the auditor.

Question 5

Use of Representation Letters

Answer 5

Mgmt representations are used to confirm representations given to the auditor regarding the FS completeness of information, recognition, measurement, disclosure & subsequent events.

Question 6

Purpose of Representation Letter

Answer 6

To confirm representation explicitly or implicitly given to the auditor. Its also used to indicate and document the continuing appropriateness of such representations & also reduce the possibility of misunderstanding concerning matters that are subject of the representations.