Document ID: chunk:federal_register_of_legislation:F2023C00330:reg:10:p7
Version: federal_register_of_legislation:F2023C00330
Segment Type: reg
Provision Reference: reg 10 (pt 7/14)
Character Range: 26541–29807

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 of accounting policies are appropriate; and

           * Whether matters such as the following, where relevant under the applicable financial reporting framework, have been recognised, measured, presented or disclosed in accordance with that framework:

                   + Plans or intentions that may affect the carrying value or classification of assets and liabilities;

                   + Liabilities, both actual and contingent;

                   + Title to, or control over, assets, the liens or encumbrances on assets, and assets pledged as collateral; and

                   + Aspects of laws, regulations and contractual agreements that may affect the financial report, including non‑compliance.

Additional Written Representations about Information Provided to the Auditor

A11.         In addition to the written representation required by paragraph 11, the auditor may consider it necessary to request management to provide a written representation that it has communicated to the auditor all deficiencies in internal control of which management is aware.

Written Representations about Specific Assertions

A12.         When obtaining evidence about, or evaluating, judgements and intentions, the auditor may consider one or more of the following:

           * The entity's past history in carrying out its stated intentions.

           * The entity's reasons for choosing a particular course of action.

           * The entity's ability to pursue a specific course of action.

           * The existence or lack of any other information that might have been obtained during the course of the audit that may be inconsistent with management's judgement or intent.

A13.         In addition, the auditor may consider it necessary to request management to provide written representations about specific assertions in the financial report; in particular, to support an understanding that the auditor has obtained from other audit evidence of management's judgement or intent in relation to, or the completeness of, a specific assertion.  For example, if the intent of management is important to the valuation basis for investments, it may not be possible to obtain sufficient appropriate audit evidence without a written representation from management about its intentions.  Although such written representations provide necessary audit evidence, they do not provide sufficient appropriate audit evidence on their own for that assertion.

Communicating a Threshold Amount (Ref: Para. 10‑11, 13)

A14.         ASA 450 requires the auditor to accumulate misstatements identified during the audit, other than those that are clearly trivial.[6]  The auditor may determine a threshold above which misstatements cannot be regarded as clearly trivial.  In the same way, the auditor may consider communicating to management a threshold for purposes of the requested written representations.

Date of and Period(s) Covered by Written Representations (Ref: