## SA 580: Written Representations — What Management Must Confirm

Written representations are audit evidence obtained from management in writing. SA 580 requires representations covering two core areas of management responsibility.

### Area 1: Preparation of the Financial Statements

The auditor shall request management to confirm in writing that it has:

Fulfilled its responsibility for preparing financial statements in accordance with the applicable financial reporting framework (including, where relevant, fair presentation)
Done so as set out in the terms of the audit engagement

> Why management? Management is responsible for preparing and presenting financial statements and for the conduct of the entity's business — they have sufficient knowledge of the process and the assertions therein to make these representations.

### Area 2: Information Provided and Completeness of Transactions

The auditor shall request management to confirm:

1. It has provided the auditor with all relevant information and access as agreed in the engagement terms

2. All transactions have been recorded and are reflected in the financial statements

### Why Written Representations Matter

They confirm management has discharged specific responsibilities
They are a form of audit evidence — not a substitute for other evidence, but a necessary complement
Incomplete or unreliable representations affect the auditor's overall evidence assessment

Worked example

### Example 1

MTP 2 Scenario: An auditor needs written representations from management confirming: (1) Financial statements have been prepared per the applicable framework (e.g., Ind AS / Companies Act), fulfilling management's stated responsibility as per the engagement letter. (2) All relevant information, records, and access have been provided to the auditor as agreed. (3) All transactions of the entity during the period are recorded and reflected in the financial statements — nothing has been omitted or excluded.

⚠️ Common exam mistakes

Treating written representations as a substitute for other audit evidence — they are supplementary, not standalone proof
Failing to request a representation on completeness of transactions, focusing only on preparation of financials
Not linking the representation to the specific terms of the audit engagement as agreed
Confusing written representations (a form of evidence) with management explanations or oral representations

Bare-Act text Written Representations about Management's Responsibilities · SA 580 – Written Representations · click to expand

The auditor shall request management to provide a written representation that it has fulfilled its responsibility for the preparation of the financial statements in accordance with the applicable financial reporting framework, including, where relevant, their fair presentation, as set out in the terms of the audit engagement. The auditor shall request management to provide a written representation that: (i) it has provided the auditor with all relevant information and access as agreed in the terms of the audit engagement; and (ii) all transactions have been recorded and are reflected in the financial statements.

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SA 580 Written Representations — Scope and Content of Management Responsibilities

Worked example

⚠️ Common exam mistakes