Document ID: chunk:federal_register_of_legislation:F2023C00330:reg:10:p10
Version: federal_register_of_legislation:F2023C00330
Segment Type: reg
Provision Reference: reg 10 (pt 10/14)
Character Range: 35078–38200

competence, integrity, ethical values or diligence of management, or about its commitment to or enforcement of these, but concluded that the written representations are nevertheless reliable.  In such a case, this significant matter is documented in accordance with ASA 230.

Written Representations about Management's Responsibilities (Ref: Para. 20)

A26.         As explained in paragraph A7, the auditor is not able to judge solely on other audit evidence whether management has fulfilled the responsibilities referred to in paragraphs 10 and 11.  Therefore, if, as described in paragraph 20(a), the auditor concludes that the written representations about these matters are unreliable, or if management does not provide those written representations, the auditor is unable to obtain sufficient appropriate audit evidence.  The possible effects on the financial report of such inability are not confined to specific elements, accounts or items of the financial report and are hence pervasive.  ASA 705 requires the auditor to disclaim an opinion on the financial report in such circumstances.[9]

If Management do not Provide Written Representations

Aus A26.1 If management do not provide written representations, the auditor would ordinarily:

(a) draw to the attention of those charged with governance any relevant regulatory requirements which give the auditor a right of access to any requested information, explanations or assistance for the purposes of the audit;[*]

(b) consider any other implications of the refusal that may have any effect on the auditor's report;[#] and

(c) consider whether the auditor has any regulatory obligation to report that management has not provided a written representation.[†]

A27.         A written representation that has been modified from that requested by the auditor does not necessarily mean that management did not provide the written representation.  However, the underlying reason for such modification may affect the opinion in the auditor's report.  For example:

           * The written representation about management's fulfilment of its responsibility for the preparation of the financial report may state that management believes that, except for material non‑compliance with a particular requirement of the applicable financial reporting framework, the financial report is prepared in accordance with that framework.  The requirement in paragraph 20 does not apply because the auditor concluded that management has provided reliable written representations.  However, the auditor is required to consider the effect of the non‑compliance on the opinion in the auditor's report in accordance with ASA 705.

           * The written representation about the responsibility of management to provide the auditor with all relevant information agreed in the terms of the audit engagement may state that management believes that, except for information destroyed in a fire, it has provided the auditor with such information.  The requirement in paragraph 20 does not apply because the auditor concluded that management has provided reliable written representations.