Acca aa s21 Notes

cannot
substitute for other audit evidence or performing audit 
procedures in accordance with ISAs.
Written representation 
alone
cannot provide sufficient appropriate audit evidence for an assertion. If, 
for example, an assertion depends on management's intention (eg to settle a claim 'out-of-court'), the 
auditor must consider:
๏
the reasons for management's intention
๏
management's ability to pursue its intention
๏
management's past history in carrying out intentions
๏
other information (or lack thereof) which might contradict management's intention.
September 2021 to June 2022 exams
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2. Examples
Here are some examples of subject-matter specific representations that might be found in a typical 
letter of representation:
๏
Any knowledge or suspicion of fraud has been disclosed to the auditor.
๏
All known actual or possible litigation and claims has been disclosed to the auditor and 
accounted for/disclosed in accordance with financial reporting requirements.
๏
All events occurring subsequent to the date of the financial statements have been adjusted or 
disclosed as required.
๏
Plans for future actions relating to management’s going concern assessment and the feasibility 
of these plans.
You should appreciate the necessity of these representations to obtain sufficient appropriate 
evidence about the assertion of 
completeness
, in particular.
3. Potential problems
If written representations are