ISA 580 Written representation
AUDIT SAAE
PROCEDURE
AUDIT written
EVIDENCE SAAE
representation
Audit Written
Evidence + Representation = SAAE
ISA 580 Written representation
To obtain written representations from management
and, where appropriate, TCWG that they believe that they
have fulfilled their responsibility for the preparation of the
FS and for the completeness of the information provided
to the auditor.
To support other audit evidence relevant tothe FS
Objective or specific assertions in the FS by means of written
representations if determined necessary by the
auditor or required by other ISAs.
To respond appropriately to written representations
provided by management and, where appropriate,
TCWG,or if management or,where appropriate, TCWG
do not provide the written representations requested
by the auditor.
ISA 580 Written representation
Auditor appointed
YEAR END AGM
for year ended
30-june-22 30-sep-22
30-june-23
we will provide FS in accordance with IFRS,
we will provide all information.
ISAs
500 505 520 530 540 550 560 570
ISA 580 Written representation
Written Representations about
Management’s Responsibilities
Preparation of the Financial Statements Information Provided and
in accordance with IFRS Completeness of Transactions
YES NO
DISCLAIM
ISA 580 Written representation
To obtain written representation about
specific ISAs and others
ISA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements
ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements
ISA 450 Evaluation of Misstatements Identified during the Audit
ISA 501 Audit Evidence-Specific Considerations for Selected Items
ISA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
ISA 550 Related Parties
ISA 560 Subsequent Events
ISA 570 Going Concern
ISA 580 Written representation
ISA FS = IFRS All Information
We have disclosed the result of our
240 assessment of the risk that the FS maybe
materially misstated as a result of fraud.
We have disclosed all information in
relation to fraud or suspected fraud.
We have disclosed all information in
relation to fraud that was communicated
to us by employee, analyst or regulator.
We have disclosed that all known actual or
501 possible litigation and claims whose effects
should be considered when preparing the
financial statements have been disclosed
to the auditor and accounted for and
disclosed in accordance with the
applicable financial reporting framework.
ISA 580 Written representation
ISA FS = IFRS All Information
Significant assumptions used
540 by us in making accounting
estimates are reasonable
Significant assumptions used
by us in making accounting
estimates are reasonable.
RPR&T are appropriately We have disclosed you all the related
550 accounted for and disclosed party relationship and transaction of
in a/c with IAS 24. which we are aware.
All subsequent events that
560 require adjustment or
disclosure has been adjusted
or disclosed in a/c with IAS 10.
We have disclosed managements
570 plans for future actions in relation to
its going concern assessment and
the feasibility of those plans.
ISA 580 Written representation
MANUFACTURING Labour Health & Safety Regulations
COMPANY
Inquiry of
MANAGEMENT Non-compliance
YES
Regulator will exert fine/penalty
ISA 580 Written representation
ISA’s FS = IFRS All Information
We have disclosed all instances
250 of non compliances with laws
and regulation
Effect of Uncorreted
misstatement are immaterial
450 both individually and in the
aggregate
ISA 580 Written representation
Materiality = Rs. 10
Performance
Materiality = Rs. 9
Tolerable Misstatement
EXCEEDS
Misstatenment = Rs. 1 Identified = Rs. 3
YES
Respond
WRITTEN REPRESENTATION
Effect of uncorrected misstatement are immaterial both individual
and in aggregate to financial statement as a whole.
A list of uncorrected misstatement is attached to representation letter
ISA 580 Written representation
Materiality = Rs. 10
Performance
Materiality = Rs. 9
Tolerable
Misstatenment = Rs. 2
Misstatement
Identified = Rs. 1 IGNORE Material
Misstatement (NO)
Misstatement
Compare with materiality
Identified = Rs. 4
Schedule of uncorrected
misstatement
WRITTEN REPRESENTATION
Effect of uncorrected misstatement are immaterial both individual
and in aggregate to financial statement as a whole.
A list of uncorrected misstatement is attached to representation letter
ISA 580 Written representation
COMPANY INVESTMENT Debenture
TFCs
Accounting dependent in Management’s intention Sukuk
PIB
Market treasury bills
Falls in Specific ISA
Hold for 5 years
YES NO
Written Representation Audit procedure
SAAE
YES NO
No Written Obtain Written
Representation Representation
Specific ISA and Others
Required by other ISA WR to support other audit evidence
Yes Provided No
Doubt over the
Yes No END Discuss the matter
reliability of WR Re-evaluate the Take appropriate actions,
with management integrity of management including determining the
and evaluate the effect that possible effect on the opinion
If the auditor has concerns about the If written representations are this may have on the in the auditor’s report in a/c
competence, integrity, ethical values of the inconsistent with other audit reliability of representations with ISA 705, considering the
management, the auditor shall determine evidence, the auditor shall (oral or written) and audit requirement of disclaimer
the effect that such concerns may have on perform audit procedures to evidence in general; due to MR
the reliability of representations (oral or attempt to resolve the matter.
written) and audit evidence in general. It
may cause the auditor to conclude that the Perform other audit procedures
risk of management misrepresentation in (whether risk assessment remain
the financial statements is such that an appropriate and if not revise the
audit cannot be conducted. In such a case, risk assessment and determine
Matter resolve Yes END
the auditor may consider with drawing N,T and E of FAP) to resolve the
from the engagement, where withdrawal is matter
possible under applicable law or regulation, No
unless
The auditor shall reconsider the assessment of the
competence, integrity, ethical values of management,
TCW put in place appropriate the auditor shall determine the effect that this may
corrective measures have on the reliability of representations and audit
evidence in general.
Such measures may
not be sufficient to
If the auditor concludes that the WR are not reliable, the auditorshall
enable the auditor to
take appropriate actions, including determining the possible effect on
issue an unmodified
the opinion in the auditor’s report having regard to the requirement
audit opinion
mention in management responsibility(Disclaimer).
ISA 580 Written representation
INVESTMENT AMORTIZE
COMPANY (for 5 YEARS) COST
SOLD
(before 5 YEARS)
FOR PAYMENT
(within 5 days)
Fraud?
AUDITOR COMPANY
NO
Comm. to
Mgt. Fraud?
DEPARTMENT
ISA 580 Written representation
CLIENT’S LETTERHEAD
Addressed to the auditor
Content of Written representation:
To obtain written representations from management and, where
appropriate, TCWG that they believe that they have fulfilled their
responsibility for the preparation of the FS and for the
completeness of the information provided to the auditor.
To support other audit evidence relevant tothe FS or specific
Objective assertions in the FS by means of written representations if
determined necessary by the auditor or required by other ISAs.
To respond appropriately to written representations provided by
management and, where appropriate, TCWG,or if management
or,where appropriate, TCWG do not provide the written
representations requested by the auditor.
we will provide FS in accordance with IFRS, we will provide all information.
ISA 580 Written representation
CLIENT’S LETTERHEAD
ISA FS = IFRS All Information
We have disclosed the result of our
240 assessment of the risk that the FS maybe
materially misstated as a result of fraud.
We have disclosed all information in
relation to fraud or suspected fraud.
We have disclosed all information in
relation to fraud that was communicated
to us by employee, analyst or regulator.
We have disclosed that all known actual or
501 possible litigation and claims whose
effects should be considered when
preparing the financial statements have
been disclosed to the auditor and
accounted for and disclosed in accordance
with the applicable financial reporting
framework.
ISA 580 Written representation
CLIENT’S LETTERHEAD
ISA FS = IFRS All Information
Significant assumptions used
540 by us in making accounting
estimates are reasonable
Significant assumptions used
by us in making accounting
estimates are reasonable.
550 RPR&T are appropriately
accounted for and disclosed
We have disclosed you all the related
party relationship and transaction of
in a/c with IAS 24. which we are aware.
All subsequent events that
560 require adjustment or
disclosure has been adjusted
or disclosed in a/c with IAS 10.
We have disclosed managements
570 plans for future actions in relation to
its going concern assessment and
the feasibility of those plans.
ISA 580 Written representation
CLIENT’S LETTERHEAD
To whome representation is requested:
o With appropriate responsibility for the FS ad knowledge of the matter
concerned. Normally CEO and CFO or TCWG
Can CFO or CEO confirm or discuss with third party or internally
before giving representation?
o Yes
Date and Period Covered by Written Representation:
o Shall not be dated after the date of Auditors report
o At the date of audit report or as near as practicable
o For all financial statement and period referred in auditors report
ISA 580 Written representation
CLIENT’S LETTERHEAD
Can management modify the language of written representation?
Appropriate only in following circumstances:
o Except for recording impairment – we have prepared the FS in accordance
with the IFRS.
o Due to fire – management said that except for the information destroyed
in fire we have provided all the information.
COMPANY Bank Audit
10 Plant & Machinery 1200 Branches
Revaluation 10 Branches caught fire
8 2 All information provided ?
