Page 228 - CA Inter Audit PARAM

CA Ravi Taori
Furthermore, because 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.

The written representations are for all periods referred to in the auditor’s report because management
needs to reaffirm that the written representations it previously made with respect to the prior periods
remain appropriate.

Situations may arise where current management were not present during all periods referred to in the
auditor’s report. Such persons may assert that they are not in a position to provide some or all of the written
representations because they were not in place during the period. This fact, however, does not diminish
such persons’ responsibilities for the financial statements as a whole. Accordingly, the requirement for the
auditor to request from them written representations that cover the whole of the relevant period(s) still
applies. In view of above, management is required to provide the written representation for all the periods
even when current management were not present during all periods referred to in the auditor’s report.

QNO-- Date of Written Representation New Course – (S24R)
580.07.84 Bhaskar CNO – SA 580.080

CA Manoj is the statutory auditor of a company. He has completed the audit and issued the audit report
dated June 30, 2024. Before signing the audit report, written representations dated June 29, 2024, were
obtained from the management of the company. Discuss the significance of the date of written
representations. Also state whether the written representations obtained on June 29, 2024 is appropriate
or not.
Answer As per SA 580,”Written Representations” 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.

Since written representations are necessary audit evidence, the auditor’s opinion cannot be expressed, and
the auditor’s report cannot be dated before the date of the written representations. Furthermore, because
the auditor must consider events occurring up to the date of the auditor’s report that might 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, CA Manoj obtained written representations dated June 29, 2024, from the management
of the company before signing the audit report on June 30, 2024.

From the above is can be concluded that written representations have been obtained appropriately. 16

QNO WR (Refusal) Old Course -- (P16M/N16M/N18R/N18M/M19M/N19E/N23R)
580.09 Bhaskar CNO- SA580.020/SA580.100 New Course –(SM25)
CA R Gurumurthy is about to complete audit of a company. Before completion, he asks management to
provide him a written representation confirming that management has fulfilled its responsibilities
regarding preparation of financial statements. He also wants management to confirm in writing about
providing of all the necessary information and completeness of transactions to him. The management feels
that auditor is seeking irrelevant documents near the completion of audit. Why view of management is not
proper? What possible implications it may lead to?
OR
The Partner of Vansh and Vaibhav, Chartered Accountants, asked the management to provide statements
from the creditors as part of audit evidence and also required written representation from the management
but the management did not provide the requested written representations. Discuss how the auditor would
proceed.
OR
What do you mean by "Written Representations"? As an auditor, how you will deal if management does
not provide requested written representations?
OR
The Partner of Ashish Surjeet and Company, Chartered Accountants, asked the management to provide
statements from the creditors as part of audit evidence and also required written representation from the
management but the management did not provide the requested written representations. Discuss how the
auditor would proceed.
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