ISA 580 – Knowsia

AA – May 2023 – L2 – SA – Q1 – Audit Evidence

Explaining objectives and steps in obtaining written representation and handling contradictions in audit evidence.

Question

Promise and Treasure are two good childhood friends. After their secondary education, Promise traveled abroad to further his education and obtained his degrees there. Treasure attended a university in Nigeria and graduated with a second-class lower degree. During his time abroad, Promise met some foreign associates and decided to start a company in Nigeria with Treasure.

The company, named Promise and Treasure Company Nigeria Limited, specializes in importing steel products with future plans to set up a local factory. The first-year accounts were prepared as of December 31, 2020. Your firm has been appointed as auditors for the company. Upon completing the audit, you requested a written representation from management. The Managing Director found this request unusual, as he believed all necessary information and documents had already been provided.

Required:

a. Explain to the Managing Director the objectives of the auditor in obtaining a written representation as per ISA 580. (4 Marks)

b. State the steps the auditor should take if a representation by management is contradicted by other audit evidence. (6 Marks)

c. State THREE matters that are required of management in the letter of representation in line with ISA 580, requiring specific representation from management. (3 Marks)

d. Highlight SEVEN aspects of the form and contents of a letter of representation. (14 Marks)

e. State the steps the auditor should take if management refuses to provide the requested written representation. (3 Marks)

Answer

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Tags: Audit evidence, Audit Process, Auditor's Actions, ISA 580, Management Representation, Written Representation
Level: Level 2

Topic: Audit evidence
Series: MAY 2023

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

Question

ISA 580: Written Representations guides the use of management representations as audit evidence, the procedures to be applied in evaluating and documenting management representations, and the action to be taken if management refuses to provide appropriate representations.

Required:
Explain the action to be taken by the auditor if management refuses to provide representations.
(3 marks)

Answer

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Tags: ISA 580, Qualified Opinion, Scope Limitation, Written representations
Level: Level 2

Topic: Audit and Assurance Evidence, Completion Procedures and Reporting
Series: NOV 2023

AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting

Outline reasons for obtaining a letter of representation before signing the audit report.

Question

The audit engagement team of which you are a member, for the audit of Survival Ltd, has almost completed the audit of the financial statements for the year ended 31 October 2019. You have been told that your firm will need to obtain a letter of representation from management as part of the audit evidence needed to form an opinion on the financial statements.

Required:
i) Outline FOUR (4) reasons why your audit firm needs to obtain a letter of representation before the audit report is signed.
(6 marks)

ii) Outline TWO (2) factors you will consider determining the adequacy of management representation as audit evidence.
(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit report, ISA 580, Letter of Representation, Management Responsibility
Level: Level 2

Topic: Completion Procedures and Reporting
Series: NOV 2020

AA – Aug 2022 – L2 – Q3b – Completion Procedures and Reporting

Lists items that could be included in a management representation letter as part of audit evidence.

Question

ISA 580: Management Representations provides guidance on the use of management representations as audit evidence.

Required:
List FIVE (5) items that could be included in a management representation letter.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, ISA 580, Management representation letter
Level: Level 2

Topic: Completion Procedures and Reporting
Series: AUG 2022

AA – May 2023 – L2 – SA – Q1 – Audit Evidence

Explaining objectives and steps in obtaining written representation and handling contradictions in audit evidence.

Question

Required:

a. Explain to the Managing Director the objectives of the auditor in obtaining a written representation as per ISA 580. (4 Marks)

b. State the steps the auditor should take if a representation by management is contradicted by other audit evidence. (6 Marks)

c. State THREE matters that are required of management in the letter of representation in line with ISA 580, requiring specific representation from management. (3 Marks)

d. Highlight SEVEN aspects of the form and contents of a letter of representation. (14 Marks)

e. State the steps the auditor should take if management refuses to provide the requested written representation. (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Process, Auditor's Actions, ISA 580, Management Representation, Written Representation
Level: Level 2

Topic: Audit evidence
Series: MAY 2023

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

Question

Required:
Explain the action to be taken by the auditor if management refuses to provide representations.
(3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: ISA 580, Qualified Opinion, Scope Limitation, Written representations
Level: Level 2

Topic: Audit and Assurance Evidence, Completion Procedures and Reporting
Series: NOV 2023

AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting

Outline reasons for obtaining a letter of representation before signing the audit report.

Question

Required:
i) Outline FOUR (4) reasons why your audit firm needs to obtain a letter of representation before the audit report is signed.
(6 marks)

ii) Outline TWO (2) factors you will consider determining the adequacy of management representation as audit evidence.
(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit report, ISA 580, Letter of Representation, Management Responsibility
Level: Level 2

Topic: Completion Procedures and Reporting
Series: NOV 2020

AA – Aug 2022 – L2 – Q3b – Completion Procedures and Reporting

Lists items that could be included in a management representation letter as part of audit evidence.

Question

ISA 580: Management Representations provides guidance on the use of management representations as audit evidence.

Required:
List FIVE (5) items that could be included in a management representation letter.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, ISA 580, Management representation letter
Level: Level 2

Topic: Completion Procedures and Reporting
Series: AUG 2022

Question Tag: ISA 580

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AA – May 2023 – L2 – SA – Q1 – Audit Evidence

Explaining objectives and steps in obtaining written representation and handling contradictions in audit evidence.

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting

Outline reasons for obtaining a letter of representation before signing the audit report.

AA – Aug 2022 – L2 – Q3b – Completion Procedures and Reporting

Lists items that could be included in a management representation letter as part of audit evidence.

AA – May 2023 – L2 – SA – Q1 – Audit Evidence

Explaining objectives and steps in obtaining written representation and handling contradictions in audit evidence.

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting

Outline reasons for obtaining a letter of representation before signing the audit report.

AA – Aug 2022 – L2 – Q3b – Completion Procedures and Reporting

Lists items that could be included in a management representation letter as part of audit evidence.

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AA – May 2023 – L2 – SA – Q1 – Audit Evidence

Explaining objectives and steps in obtaining written representation and handling contradictions in audit evidence.

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AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

You're reporting an error for "AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence"

AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting

Outline reasons for obtaining a letter of representation before signing the audit report.

You're reporting an error for "AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting"

AA – Aug 2022 – L2 – Q3b – Completion Procedures and Reporting

Lists items that could be included in a management representation letter as part of audit evidence.

You're reporting an error for "AA – Aug 2022 – L2 – Q3b – Completion Procedures and Reporting"

AA – May 2023 – L2 – SA – Q1 – Audit Evidence

Explaining objectives and steps in obtaining written representation and handling contradictions in audit evidence.

You're reporting an error for "AA – May 2023 – L2 – SA – Q1 – Audit Evidence"

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

You're reporting an error for "AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence"

AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting

Outline reasons for obtaining a letter of representation before signing the audit report.

You're reporting an error for "AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting"

AA – Aug 2022 – L2 – Q3b – Completion Procedures and Reporting

Lists items that could be included in a management representation letter as part of audit evidence.

You're reporting an error for "AA – Aug 2022 – L2 – Q3b – Completion Procedures and Reporting"

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