Document ID: chunk:federal_register_of_legislation:F2023C00330:reg:10:p5
Version: federal_register_of_legislation:F2023C00330
Segment Type: reg
Provision Reference: reg 10 (pt 5/14)
Character Range: 20723–23945

or does not provide the requested written representations, it may alert the auditor to the possibility that one or more significant issues may exist.  Further, a request for written, rather than oral, representations in many cases may prompt management to consider such matters more rigorously, thereby enhancing the quality of the representations.

Management from whom Written Representations are Requested (Ref: Para. 9)

A2.             Written representations are requested from those responsible for the preparation of the financial report.  Those individuals may vary depending on the governance structure of the entity, and relevant law or regulation; however, management (rather than those charged with governance) is often the responsible party.  Written representations may therefore be requested from the entity's chief executive officer and chief financial officer, or other equivalent persons in entities that do not use such titles.  In some circumstances, however, other parties, such as those charged with governance, are also responsible for the preparation of the financial report.

A3.             Due to its responsibility for the preparation of the financial report, and its responsibilities for the conduct of the entity's business, management would be expected to have sufficient knowledge of the process followed by the entity in preparing and presenting the financial report and the assertions therein on which to base the written representations.

A4.             In some cases, however, management may decide to make enquiries of others who participate in preparing and presenting the financial report and assertions therein, including individuals who have specialised knowledge relating to the matters about which written representations are requested.  Such individuals may include:

           * An actuary responsible for actuarially determined accounting measurements.

           * Staff engineers who may have responsibility for and specialised knowledge about environmental liability measurements.

           * Internal counsel who may provide information essential to provisions for legal claims.

A5.             In some cases, management may include in the written representations qualifying language to the effect that representations are made to the best of its knowledge and belief.  It is reasonable for the auditor to accept such wording if the auditor is satisfied that the representations are being made by those with appropriate responsibilities and knowledge of the matters included in the representations.

A6.             To reinforce the need for management to make informed representations, the auditor may request that management include in the written representations confirmation that it has made such enquiries as it considered appropriate to place it in the position to be able to make the requested written representations.  It is not expected that 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