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CA Final · Advanced Auditing, Assurance and Professional Ethics · Completion and Review

Standards on written representations apply to all entities regardless of form, nature or size. CA Meera is auditing a statutory corporation whose governing statute places specific responsibilities on management. Which statement best reflects the ICAI position in SA 580 as described in its material modifications note?

The specific public-sector reference was deleted because ICAI standards apply equally to all entities irrespective of form, nature or size. However, the spirit was retained: where management has particular responsibilities, additional written representations may be needed, so the auditor may seek them for such an entity.

  1. ASA 580 has no application because the entity is not a company
  2. BAdditional written representations cannot be requested beyond those listed in the standard
  3. CA separate public-sector version of SA 580 must be applied, as ISA text is retained
  4. DThe explicit public-sector reference was deleted since the standards apply equally to all entities, but the idea that management responsibilities may require additional representations is retainedCorrect

Explanation

The SA 580 modification note says the specific public-sector reference in ISA application material was deleted because ICAI standards apply equally to all entities. The spirit was retained, since management responsibilities in some entities may give rise to additional written representations. The other options deny applicability or additional representations.

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