## SA 580: Written Representations – Fundamentals

### Definition

A Written Representation (WR) is a written statement by management provided to the auditor to:

Confirm certain matters, or
Support other audit evidence

> WRs do not include financial statements, the assertions therein, or supporting books and records.

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### Written Representations as Audit Evidence

Governed by SA 500 (Audit Evidence):

Concept	Meaning
Sufficiency	Quantum (how much) of evidence
Appropriateness	Quality of evidence
WR alone	Does NOT provide SAAE on its own
WR role	Supplementary/additional evidence only

Critical rule: The auditor must seek corroborative evidence from other sources (internal or external) for any matter covered by a WR. A WR is never a substitute for other audit evidence.

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### Three Objectives of the Auditor (SA 580)

1. Obtain WR from management (and TCWG where appropriate) confirming they believe they have fulfilled responsibility for:

Preparation of the financial statements
Completeness of information provided to the auditor

2. Support other audit evidence relevant to the financial statements or specific assertions

3. Respond appropriately if management does not provide the requested WR

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### Who Provides WR?

The auditor requests WR from management with appropriate responsibilities for the financial statements and knowledge of the matters concerned.

Worked example

### Example 1

Patel Ltd's auditor asks management for a WR confirming all transactions are recorded. Management signs the letter. Can the auditor rely solely on this WR as SAAE for completeness? No. The WR is supplementary evidence only. The auditor must also perform corroborative procedures such as reviewing the general ledger, bank reconciliations, and cut-off tests.

### Example 2

The engagement partner asks who should sign the WR. The answer: management with appropriate responsibilities AND knowledge of the matters. Typically the CEO/CFO – not a junior accounts officer who lacks authority or full knowledge of transactions.

⚠️ Common exam mistakes

Treating a Written Representation as equivalent to SAAE – it is supplementary evidence only, never a standalone substitute.
Including financial statements or assertions therein as part of 'written representations' – they are explicitly excluded.
Requesting WR from staff who lack appropriate responsibility or knowledge of the specific matters.
Confusing 'sufficiency' (quantum) and 'appropriateness' (quality) of audit evidence under SA 500.

Bare-Act text Definition · SA 580 – Written Representations · click to expand

A written representation is a written statement by management provided to the auditor to confirm certain matters or to support other audit evidence. Written representations in this context do not include financial statements, the assertions therein, or supporting books and records.

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Definition, Nature as Audit Evidence & Objectives

Worked example

⚠️ Common exam mistakes