Document ID: chunk:federal_register_of_legislation:F2023C00330:reg:10:p6
Version: federal_register_of_legislation:F2023C00330
Segment Type: reg
Provision Reference: reg 10 (pt 6/14)
Character Range: 23631–26840

such enquiries would usually require a formal internal process beyond those already established by the entity.

Written Representations about Management's Responsibilities (Ref: Para. 10‑11)

A7.             Audit evidence obtained during the audit that management has fulfilled the responsibilities referred to in paragraphs 10 and 11 is not sufficient without obtaining confirmation from management that it believes that it has fulfilled those responsibilities.  This is because the auditor is not able to judge solely on other audit evidence whether management has prepared and presented the financial report and provided information to the auditor on the basis of the agreed acknowledgement and understanding of its responsibilities.  For example, the auditor could not conclude that management has provided the auditor with all relevant information agreed in the terms of the audit engagement without asking it whether, and receiving confirmation that, such information has been provided.

A8.             The written representations required by paragraphs 10 and 11 draw on the agreed acknowledgement and understanding of management of its responsibilities in the terms of the audit engagement by requesting confirmation that it has fulfilled them.  The auditor may also ask management to reconfirm its acknowledgement and understanding of those responsibilities in written representations.  This is common in certain jurisdictions, but in any event may be particularly appropriate when:

           * Those who signed the terms of the audit engagement on behalf of the entity no longer have the relevant responsibilities;

           * The terms of the audit engagement were prepared in a previous year;

           * There is any indication that management misunderstands those responsibilities; or

           * Changes in circumstances make it appropriate to do so.

           * Consistent with the requirement of ASA 210,[5] such reconfirmation of management's acknowledgement and understanding of its responsibilities is not made subject to the best of management's knowledge and belief (as discussed in paragraph A5).

Considerations Specific to Public Sector Entities

A9.             The mandates for audits of financial reports of public sector entities may be broader than those of other entities.  As a result, the premise, relating to management's responsibilities, on which an audit of the financial report of a public sector entity is conducted may give rise to additional written representations.  These may include written representations confirming that transactions and events have been carried out in accordance with law, regulation or other authority.

Other Written Representations (Ref: Para. 13)

Additional Written Representations about the Financial Report

A10.         In addition to the written representation required by paragraph 10, the auditor may consider it necessary to request other written representations about the financial report.  Such written representations may supplement, but do not form part of, the written representation required by paragraph 10.  They may include representations about the following:

           * Whether the selection and application