## SA 580: Content of Written Representations
### A. WR on Management's Responsibilities
#### 1. Preparation of Financial Statements
Management confirms it has fulfilled its responsibility for preparing the FS in accordance with the applicable financial reporting framework (including fair presentation where relevant).
Who may management consult before signing?
- Actuary – actuarially determined accounting measurements
- Staff engineers – environmental liability measurements
- Internal counsel – provisions for legal claims
Qualifying language: Management may state representations are made "to the best of its knowledge and belief" – acceptable if those signing have appropriate responsibilities and knowledge.
Informed representations: The auditor may ask management to confirm it made appropriate internal inquiries before signing the WR.
#### 2. Information Provided & Completeness of Transactions
Management must confirm:
- It provided the auditor all relevant information and access as agreed in the audit engagement terms
- All transactions have been recorded and are reflected in the financial statements
---
### B. Other Written Representations
Required by other SAs, or obtained at the auditor's discretion. These supplement (but are NOT part of) the management responsibilities WR. Cover:
| Area | Examples |
|---|---|
| Accounting policies | Selection and application are appropriate |
| Assets & liabilities | Plans/intentions affecting carrying value or classification |
| Liabilities | Both actual and contingent |
| Assets | Title to/control over assets; liens, encumbrances, collateral |
| Legal/regulatory | Laws, regulations, contractual agreements including non-compliance |
---
### C. Additional WR on Internal Control Deficiencies
The auditor may request a WR that management has communicated all deficiencies in internal control of which it is aware.
---
### D. WR on Specific Assertions (Management Intent)
When evaluating management judgments/intentions, the auditor considers:
1. Entity's past history in carrying out stated intentions
2. Entity's reasons for choosing a particular course of action
3. Entity's ability to pursue a specific course of action
4. Other information that may be inconsistent with management's judgment or intent
> Example: Where management's intent is material to valuation of investments, a WR about intent may be necessary – but it still does NOT constitute SAAE on its own.