Chapter 10 WREP

Question 1

ISA 580 requires A obtain W Rep from management- 4?

Answer 1

1) fulfil responsibility prep Fs
2) prov’d all relevant info to A
3) all transactions recorded & reflected in Fs
4) to support other A evidence relevant to Fs / specific assertions if deemed necessary by a/ req’d by isa

Question 2

8 WRep required by specific ISA’s

Answer 2

1) all subsequent events have been approp a/v for (isa 560)
2) all RELATED PARTIES & related part transactions have been disclosed
3) all instances of non compliance have been communicated to a (isa 250)
4) Matters affecting GCONCERN have been disclosed ISA 570 gconcern
5) LITIGATION CLAIMS known/ possible have been disclosed to A & approp a/c for
6) UNCORRECTED MIS STATM - manag/ char gov consider any of these to be immaterial
7) FRAUD all known/ suspected have been communicated to Auditor
8) significant assumptions used in making estimates are teasonable

Question 3

Typical subjects of other wrep include-4

Answer 3

1) A/c policies - whether application/selection are approp
2) DEFICIENCY INT CONTROL- D communicated all to A
3) whether following measured, presented & disclosed in accord FRFRAMEWORK
- title to/ control over assets
- contingent & actual liabilities
- aspects L &reg including non compliance
4) specific assertions about class transactions, a/c balance & disclosure requiring management judgment

Question 4

WREP

A should issue a disclaimer of option if - 3

Answer 4

1) Doubt integrity m
2) m doesn’t prov’d wrep conf responsib prep fs
3) m doesn’t prov’d wrep re to provide A with info confirm completeness of transactions

Question 5

How reliable are wrep

Answer 5

Not very
Internally produced

On their own Do not provide sufficient approp evidence

Question 6

If exam asks for procedures evidence wrep are only approp where…

Answer 6

Better evidence is not avail

Ie areas requiring m judgment