Question 5a
Marking Guide
up to 1 mark per well explained point | |
| – written representations are necessary information the auditor needs in connection with the audit of the entity’s financial statements | |
| – required to confirm directors’ responsibilities | |
| – required to support other evidence or required by other isas | |
| – required to confirm management have communicated all deficiencies in internal controls | |
| – normally in the form of a letter, written by the company’s directors and addressed to the auditor | |
| – throughout the fieldwork, note any areas where representations may be required | |
| – auditors produce a draft representation letter, directors review and then produce it on their letterhead | |
| – signed by the directors and dated just before the date the audit report is signed | |
| max marks | 5 |