Wiley Practitioner's Guide to GAAS 2022

25AU-C 580 Written Representations

• Technical Alert
• 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
  • Procedures during the Year
  • Procedures at End of Year
• AU-C 580 Illustrations

TECHNICAL ALERT

In July 2020, the ASB issued SAS 143, Auditing Accounting Estimates and Related Disclosures. The SAS makes minor changes to AU-C 580. Those changes are included in this chapter.

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 ...