25. ‘ISA 580 Written representations’ explains the purpose and use of written representations as audit evidence....

25. ‘ISA 580 Written representations’ explains the purpose and use of written representations as audit evidence. State nine items that could be included in a written representation letter.

Expert Solution

Nine items that could be included in a written representation letter.

1. Financial performance, Operating results and cash flows are as per Accouning principles duly certified by management.

2. Financial statements are fairly shown as per the belief of the management.

3. Financial records and its availability.

4. Completeness and availability of all minutes of meetings of stockholders.

5. Necessary Communication received from regulatory agencies relating to non-compliance or deficiencies in financial reporting practices.

6.Absence of un-recorded transactions in books.

7.Uncorrected financial statement misstatements shown by the by the auditor during the current period and pertaining to the latest period presented are not relevant both individually and in the totality, to the financial statements taken as a whole. A note should be provided

8.Management’s acknowledgment of its responsibility for the design and implementation of Internal financial controls and different programs and controls to prevent and detect fraud

9.Managements knowledge of any fraud or expected fraud where tehre is involvement of employees or management personnel.

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