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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Subsequent events and going concern

During the audit of Zenith Ltd for the year ended 31 December 20X5, the auditor has completed substantive testing. The financial statements were approved by the directors on 20 March 20X6 and the auditor wishes to date the auditor's report. Under ISA 580, which date should the written representations normally carry?

Written representations should be dated as close as practicable to, but not after, the date of the auditor's report. This ensures management confirms its position after all audit evidence, including subsequent events, has been considered, covering all periods referred to in the report.

  1. AThe date of the auditor's report, or as close as practicable before it, and not after itCorrect
  2. BThe year-end date of 31 December 20X5
  3. CThe date the audit engagement letter was signed
  4. DA date after the auditor's report, once the financial statements have been issued

Explanation

ISA 580 requires written representations to be dated as near as practicable to, but not after, the date of the auditor's report. They must cover all financial statements and periods referred to in the report. The year-end date would pre-date audit work and subsequent events, so it would not confirm management's position at the report date.

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