Question

What is a written representation?

A. A written statement by management provided to the auditor to confirm certain matters or to support other audit evidence.
B. A letter from management to the auditor acknowledging management's responsibility for the preparation of the financial statements.
C. A written statement containing details of any verbal representations made by management during the course of the audit.
D. A letter from auditor to the management informing their concerns.

Answer 1

The correct option is A. A written statement by management provided to the auditor to confirm certain matters or to support other audit evidence.

A written representation is a statement by management confirming matters or supporting evidence for auditors. It is crucial in the auditing process to ensure clarity and accuracy of information.

Step-by-step explanation:

A written representation is a formal statement provided by an entity's management to the auditors. Its purpose is to confirm specific matters or to corroborate other pieces of audit evidence collected during the audit process.

Option (A) in the question provided is the correct answer: A written statement by management provided to the auditor to confirm certain matters or to support other audit evidence. It often includes acknowledgments about the accuracy and completeness of information presented to the auditors, thus carrying significant weight in the context of an audit.

Such representations are sometimes requested by auditors to help alleviate potential concerns or ambiguity surrounding verbal communications or to provide a baseline of factual understandings on which the audit is predicated.