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Completion and review

5.2 Process for obtaining a written representation

 The auditor drafts the letter

 Wording is given to the client to print on client headed paper

 A responsible official within the client entity with knowledge of the matters
included signs the letter

 The letter must be signed and dated before the auditor’s report is finalised

 The letter is provided to the auditor

 The letter is reviewed by the auditor to ensure it provides sufficient appropriate
evidence.

5.3 Reliability of written representations

 The auditor must consider whether the written representation letter is consistent
with other forms of evidence obtained.

 The auditor must consider whether there are any concerns over the
competence, integrity or ethical values of management which could affect the
reliability of the written representation.

 If there are concerns over competence, integrity or ethical values the auditor
should consider withdrawing from the audit.

 If the auditor cannot withdraw, the auditor’s report will be modified with a
disclaimer of opinion.

 Similar considerations will apply if management refuse to provide a written
representation letter.

Illustrations and further practice

Look at Illustration 1 in Chapter 11 for an example of a written representation
letter

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