Some Aspects Regarding ISA 580 „Written Representations”

Author:Associate Prof. Daniel BOTEZ, Ph.D.

JEL:M42

DOI:

Keywords:written representations, representations letter, ISA 580, audit evidence

Abstract:
One professional procedure that call the auditor when conducting an audit of financial statements is to obtain written statements from the entity`s management and those charged with governance. This procedure is subject to a specific standard, International Standard on Auditing (ISA) 580 "Written representations". \r\n In terms of audit documentation in the file, this procedure is found in "Guidance on Audit Quality", finalizing the audit representation letter in the review conducted by the charge of the mission, but also in other sections of this guide. \r\n Request for written representations is used for documentation of ownership from management responsibilities. Also, the auditor uses additional written representations as evidence to substantiate the relevant audit evidence when he deems it necessary to reaffirm the assertions by management in the financial statements and obtain written answers to certain questions, or when documenting the written declaration is a mandatory procedure set by different standards for specific subjects that they treat. In the same time, the auditor based procedures established in response to certain situations, depending on management`s representations or refusal to disclose certain aspects. \r\n It may be noted that the written representations provided by management and, where appropriate, those charged with governance, character evidence is particularly because the auditor used only as additional samples, in addition to sufficient and adequate evidence obtained directly through its own procedures. \r\n\r\n\r\n\r\n

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