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Dhruv asked 1 month ago

Sir under sa580 there is one statement that written representation does not affect nature and exten of audit evidence obtained by auditor about fulfilment of mgt responsibility

Sir can u plz give example about which mgt responsibility & which audit evidence that auditor should obtain that it fulfills or not apart from taking written representation

1 Answers
RaviRavi Staff answered 1 month ago

Sorry for the late reply 
It is management responsibility to prepare financial statement as per financial reporting framework. Management promises this in letter of engagement, then management confirms it at the end of the audit in written representation, but even if management has said it twice , it is auditors responsibility to check whether accounting standards are followed , whether Schedule III is complied with ,whether guidance notes are followed and so on. Taking written representation does not mean that auditor will leave his responsibility to check compliance with financial reporting framework i.e. Accounting Standards, Schedule III and Guidance notes.

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