Question

What matters must an auditor request management to include in Management Representation Letter under paragraphs 10 and 11 of ASA 580?

Answer 1

Answer:

As pe ASA 580 on Written representations, Written representation means a written statement by management provided to the auditor to confirm certain matters or to support other audit evidence. Written representations in this context do not include the financial report, the assertions therein, or supporting books and records.

As per paragraphs 10 and 11 of ASA 580 the following matters must be included in Management Representation letter:-

i) The auditor shall request management to provide a written representation that it has fulfilled its responsibility for the preparation of the financial report in accordance with the applicable financial reporting framework, and other statutory reporting requirements, including where relevant their fair presentation, as set out in the terms of the audit engagement.

ii ) 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; and

(b) All transactions have been recorded and are reflected in the financial report.