Page 159 - CA Final PARAM Digital Book.

• All transactions have been recorded in the accounting records and are reflected in the financial
statements.

• We have disclosed to you the results of our assessment of the risk that the financial statements
may be materially misstated as a result of fraud.

• We have disclosed to you all information in relation to fraud or suspected fraud that we are aware
of and that affects the entity and involves: -
- Management;
- Employees who have significant roles in internal control; or
- Others where the fraud could have a material effect on the financial statements.

• We have disclosed to you all information in relation to allegations of fraud, or suspected fraud,
affecting the entity’s financial statements communicated by employees, former employees,
analysts, regulators or others.

• We have disclosed to you all known instances of non-compliance or suspected noncompliance
with laws and regulations whose effects should be considered when preparing financial
statements.

• We have disclosed to you the identity of the entity’s related parties and all the related party
relationships and transactions of which we are aware. (SA 550)

Chief Financial Officer
Answer
The date of the written representations shall be as near as practicable to, but not after, the date of the
auditor’s report on the financial statements. As the auditor is concerned with events occurring up to the
date of the auditor’s report that may require adjustment to or disclosure in the financial statements, the
written representations are dated as near as practicable to, but not after, the date of the auditor’s report
on the financial statements.

In the given situation, written representation is dated 15th April 2023. The audit report is dated 31st July
2023. There is a considerable lag between date of written representations and date of audit report.

It could signify that all subsequent events after date of financial statements requiring adjustments or
disclosure may not have been adjusted or disclosed in the financial statements by management.

As audit report is dated 31St July 2023, it reflects that auditor has considered subsequent events occurring
between date of financial statements and date of auditor’s report. However, written representations pertain
to 15th April 2023.

QNO WR (Refusal) Old Course – (M10E, N13R, PM17)
98.000 TITANIUM CNO--SA580.060
In the course of audit of ABC Ltd its management refuses to provide written representations As an

auditor what is your duty?
Answer Part I -- Relevant Standards & Laws
➢ SA 580 “Written Representations”

Part II -- Requirements of Relevant Standards & Laws
➢ Duty of Auditor: - Discuss with Mgt / Re-evaluate integrity of Mgt / Evaluate effect on
reliability of their representations / Take Appropriate actions / Effect on the opinion /
Auditor may Disclaim as per SA 580 if no WR for any area or matter provided.

Duty of an Auditor if management refuses to provide written representations: As per SA 580
“Written Representations”, if the management does not provide one or more of the requested
written representations, the auditor shall:
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