Wiley Practitioner's Guide to GAAS 2020

25AU-C 580 Written Representations

Scope

Definition of Term

Objectives of AU-C Section 580

Requirements

Reliance on Management Representations

Obtaining Written Representations

Financial Statements

Completeness of Information

Fraud

Recognition, Measurement, and Disclosure

Subsequent Events

Tailoring the Representation Letter

Materiality Considerations

Addressing and Dating the Letter

Signing the Letter

Doubt about Reliability of Written Representation

Requested Representation Letter Not Provided

Representations Required by Other AU-C Sections

Auditor’s Relationship with a Small or Nonpublic Client

AU-C 580 Illustrations

Illustration 1. Illustrative Representation Letter (from AU-C 580.A35)

Illustration 2. Illustrative Specific Written Representations (from AU-C 580.A36)

Illustration 3. Illustrative Updating Management Representation Letter (from AU-C 580.A37)

SCOPE

AU-C 580 provides guidance on when to obtain written representations from management and those charged with governance. Illustrations at the end of this chapter list other AU-C sections with written representation requirements. (AU-C 580.01)

DEFINITION OF TERM

Source: AU-C 580.07. For the definition related to this standard, see Appendix A, “Definitions of Terms”: Written representation.

OBJECTIVES OF AU-C SECTION 580

The objectives of the auditor are to

1. obtain written representations from management and, when appropriate, those charged with governance that they believe that they have fulfilled their responsibility ...