Chapter 9
Written representation :
Possible questions :
. What is/are written representations ?
. On what matters should an auditor take written representation ?
. What is the quality/reliability and appropriateness of written representation ?
. Reporting issues of written representation ?
What is the quality/reliability/appropriateness of written representation?
. For evidence to be reliable it must be in written form. Written representations although in
written form are not a reliable source of audit evidence as they have been generated from
internal sources like management. They are considered a weak source of evidence and
should only be used when no other evidence is available.
Reporting issues of written representation :
. If the auditor has doubts on reliability of written representation he should try and gain the
evidence from other sources and try and resolve the matter. If he concludes that the written
representation is reliable then there shall be no impact on the audit report. However if the
auditor concludes that the written representation is not reliable enough then he may take
some action including an impact on the audit report.
. If the management refuses to give written representation then the following steps should
be taken
1. Discuss with management as to why they are refusing to give the written
representation.
2. Revalue integrity and ethical values of management with respect to other
representation.
3. Try to obtain S.A.A.E from other sources
4. Take action including impact on audit report. Since it creates an inability to obtain
S.A.A.E a qualified opinion will be given if the matter is considered to be material but
not persuasive and if its deemed to be material and persuasive then a disclaimer of
opinion shall be given.
Written representation :
Possible questions :
. What is/are written representations ?
. On what matters should an auditor take written representation ?
. What is the quality/reliability and appropriateness of written representation ?
. Reporting issues of written representation ?
What is the quality/reliability/appropriateness of written representation?
. For evidence to be reliable it must be in written form. Written representations although in
written form are not a reliable source of audit evidence as they have been generated from
internal sources like management. They are considered a weak source of evidence and
should only be used when no other evidence is available.
Reporting issues of written representation :
. If the auditor has doubts on reliability of written representation he should try and gain the
evidence from other sources and try and resolve the matter. If he concludes that the written
representation is reliable then there shall be no impact on the audit report. However if the
auditor concludes that the written representation is not reliable enough then he may take
some action including an impact on the audit report.
. If the management refuses to give written representation then the following steps should
be taken
1. Discuss with management as to why they are refusing to give the written
representation.
2. Revalue integrity and ethical values of management with respect to other
representation.
3. Try to obtain S.A.A.E from other sources
4. Take action including impact on audit report. Since it creates an inability to obtain
S.A.A.E a qualified opinion will be given if the matter is considered to be material but
not persuasive and if its deemed to be material and persuasive then a disclaimer of
opinion shall be given.
