Chapter 12 - Written representations

Question 1

What does ISA 580 deal with?

Answer 1

Auditor’s responsibility to obtain written statements from management

Question 2

Are written representations required about management’s responsibilities?

Answer 2

Yes

Question 3

What 3 representations are mandatory for management?

Answer 3

• Prepare financial statements in accordance with framework
• give auditor all relevant info and access required
• All transactions recorded and reflected in financial statements

Question 4

When are written representations dated?

Answer 4

As near as possible to date of auditor’s report

Question 5

What are the requirements for written representation in ISA 240?

Answer 5

Management responsibilities in relation to fraud

Question 6

What are the requirements for written representation in ISA 250 section A?

Answer 6

All known instances of non-compliance with laws and regs disclosed

Question 7

What are the requirements for written representation in ISA 450?

Answer 7

All uncorrected misstatements are immaterial

Question 8

What are the requirements for written representation in ISA 501?

Answer 8

All known litigation and claims have been disclosed and accounted for

Question 9

What are the requirements for written representation in ISA 550?

Answer 9

Disclosed related party transactions and they’re accounted for

Question 10

What are the requirements for written representation in ISA 540?

Answer 10

Methods used in accounting estimates are appropriate

Question 11

What are the requirements for written representation in ISA 560?

Answer 11

All subsequent events requiring adjustments have been disclosed

Question 12

What are the requirements for written representation in ISA 570?

Answer 12

Regarding management’s plans for future actions and feasibility of these plans (affecting going concern)

Question 13

Which 2 ISAs require auditors to gain written representation?

Answer 13

570 and 450