Written Representations

Question 1

Which two of the following are purposes of a written representation letter from management?

A. Confirmation that management has received the signed audit report
B. Confirmation that management has fulfilled its responsibility for the preparation of the financial statements
C. Confirmation of all representations made by management in the course of the audit
D. Confirmation that management has recorded and reflected all transactions in the financial statements
E. Confirmation that management understands the terms of the engagement

Answer 1

B and D

Question 2

True/False

Written representations include a statement that management has provided the auditor with all relevant information?

Answer 2

True

Question 3

True/False

All written representations are in the form of a representation letter addressed to the shareholders

Answer 3

False

The written representation is addressed to the auditors

Question 4

Which two of the following statements are correct?

A. Written representations must include a statement that the selected accounting policies are appropriate
B. Written representations should be corroborated with other sources of evidence
C. Written representations are an appropriate source of evidence when other evidence does not exist because it has been accidentally destroyed
D. The written representations should be dated on or before the date of the auditor’s report

Answer 4

B and D