## SA-580: Written Representations (WR)
### Meaning
- A Written Representation is a written statement by management provided to the auditor to confirm certain matters or to support other audit evidence.
- WR does not include financial statements, supporting books, or records.
- WR is audit evidence but it is not Sufficient and Appropriate Audit Evidence (SAAE) on its own.
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### Objectives
1. Obtain WR from management and TCWG that:
a. Management has fulfilled its responsibility for preparation of the FS.
b. All relevant information has been provided (completeness).
2. Support other audit evidence by means of WR.
3. Respond appropriately:
a. To WR obtained from management.
b. If WR is not obtained.
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### When WR Can Be Obtained / Reconfirmed
Auditor may ask management to reconfirm when:
- Those who signed the original terms of engagement are no longer part of that responsibility.
- Terms were prepared in a previous year.
- There has been a change in circumstances.
- There are indications that management misunderstands its responsibilities.
Responsibility of management covers:
1. It has provided the auditor with relevant information and access as agreed in the engagement terms.
2. All transactions have been recorded and are reflected in the FS.
3. It has fulfilled its responsibility for preparation of the FS as per the FRF.
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### Handling WR Issues
| Situation | Auditor's Response |
|---|---|
| Concerns about integrity and ethical values | Determine effect such concerns may have on the reliability of representations |
| WR is contradictory | 1. Perform alternative procedures to resolve the matter. 2. If unresolved, reconsider reliability of management and the effect on WR and other evidence |
| WR is not reliable | Take appropriate action, including issuing a modified opinion |
| WR not received at all | 1. Discuss with management. 2. Re-evaluate reliability and evaluate effect on evidence. 3. Take appropriate actions, including modified opinion |
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### Practical Details of WR
| Aspect | Detail |
|---|---|
| From Whom | Persons responsible for preparing and presenting FS — generally management and TCWG. Also persons with specialized knowledge: actuary, staff engineers, internal counsel |
| Date of WR | Near to but not after the date of the auditor's report, because: (a) WR is evidence — opinion cannot be expressed before evidence is obtained; (b) auditor intends to obtain SAAE about subsequent events |
| Multiple Periods | If opinion covers multiple periods, WR must be obtained for all periods, even if the same management was not present throughout |
| Form | Written representation letter addressed to the auditor. If law requires management to make written public statements, that content need not be repeated in the representation letter |