Question

If the auditor concludes that the written representations are not reliable, the auditor should

a) Rely on oral representations
b) Disregard the representations entirely
c) Seek additional evidence or perform alternative procedures
d) Assume the representations are accurate

Answer 1

When an auditor deems written representations unreliable, they should seek additional evidence or perform alternative procedures, rather than simply disregarding them, relying on oral representations, or assuming accuracy. The answer is option C.

Step-by-step explanation:

If the auditor concludes that the written representations are not reliable, the auditor should seek additional evidence or perform alternative procedures to gather more information about the matter in question. Relying on oral representations is not sufficient, as they lack the formal documentation required for audit evidence.

Similarly, assuming the representations are accurate is not advisable due to the initial conclusion of their unreliability. Disregarding the representations entirely is also not appropriate, as all available information should be considered and assessed in the context of the audit.