Annual Audit Manual

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9051 Introduction
Apr-2018

In This Section

Definitions

Relationship to other CASs

Overview

This topic explains:

  • CAS objective related to management representation,
  • Definitions used further in this section,
  • Relationship of management representation with other CASs.

CAS Objective

The objectives of the auditor are (CAS 580.6):

(a) To obtain written representations from management and, where appropriate, those charged with governance that they believe that they have fulfilled their responsibility for the preparation of the financial statements and for the completeness of the information provided to the auditor;

(b) To support other audit evidence relevant to the financial statements or specific assertions in the financial statements by means of written representations if determined necessary by the auditor or required by other CASs; and

(c) To respond appropriately to written representations provided by management and, where appropriate, those charged with governance, or if management or, where appropriate, those charged with governance do not provide the written representations requested by the auditor.

Definitions

CAS Guidance

For purposes of the CASs, the following term has the meaning attributed below (CAS 580.7):

Written representation – 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 financial statements, the assertions therein, or supporting books and records.

For purposes of this CAS, references to “management” should be read as “management and, where appropriate, those charged with governance.” Furthermore, in the case of a fair presentation framework, management is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework; or the preparation of financial statements that give a true and fair view in accordance with the applicable financial reporting framework (CAS 580.8).

Relationship to other CASs

CAS Guidance

This appendix identifies paragraphs in other CASs that require subject-matter specific written representations. The list is not a substitute for considering the requirements and related application and other explanatory material in CASs (CAS 580. Appendix 1).

  • CAS 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements - paragraph 39
  • CAS 250, Consideration of Laws and Regulations in an Audit of Financial Statements - paragraph 16
  • CAS 450, Evaluation of Misstatements Identified during the Audit - paragraph 14
  • CAS 501, Audit Evidence-Specific Considerations for Selected Items - paragraph 12
  • CAS 540, Auditing Accounting Estimates and Related Disclosures - paragraph 37
  • CAS 550, Related Parties - paragraph 26
  • CAS 560, Subsequent Events - paragraph 9
  • CAS 570, Going Concern - paragraph 16(e)
  • CAS 710, Comparative Information-Corresponding Figures and Comparative Financial Statements - paragraph 9
  • CAS 720, The Auditor's Responsibilities Relating to Other Information – paragraph 13(c)