FAQs on Standards on Auditing (SA) 580 | Written Representations (Part-2)
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- Last Updated on 5 April, 2023
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Written representations (WRs) are an important means of obtaining audit evidence. WRs supplement the other audit evidence obtained by auditors during the course of the audit. SA 580, prescribes the basic principles of WRs and these principles need to be followed by auditors while complying with the requirements of SA 580 and the specific requirements of WRs prescribed by other Standards on Auditing. This story discusses some FAQs on Written Representations under SA 580.
FAQ 1. What are the objectives enlisted for the auditor to achieve under SA 580 by way of applying?
SA 580provides the following objectives:
a) To obtain written representations from management and, where appropriate, those charged with governance that they believe that they have fulfilled their responsibility for the preparation of the financial statements and for the completeness of the information provided to the auditor
b) To support other audit evidence relevant to the financial statements or specific assertions in the financial statements by means of written representations, if determined necessary by the auditor or required by other SAs
c) To respond appropriately to written representations provided by management and, where appropriate, those charged with governance, or if management or, where appropriate, those charged with governance do not provide the written representations requested by the auditor
FAQ 2. What do Written Representations entail regarding management’s obligations regarding the information provided and the completeness of transactions?
The auditor shall request management to provide a written representation that:
a) It has provided the auditor with all relevant information and access as agreed in the terms of the audit engagement
b) All transactions have been recorded and are reflected in the financial statements
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