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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Audit procedures and obtaining evidence

Which item is MOST appropriately a matter for a specific written representation from management, rather than being something the auditor can obtain sufficient evidence for from other sources?

A written representation fits management's intentions that affect balances, such as continuing a product line, where documents may not exist. Bank confirmations, recalculation of ledgers and title deeds provide stronger external or direct evidence, and representations cannot replace evidence that is reasonably available.

  1. AManagement's intention to continue a product line, where the intention affects the carrying amount of inventory and no documents confirm itCorrect
  2. BThe existence of year-end bank balances confirmed directly by the bank
  3. CThe mathematical accuracy of the sales ledger listing
  4. DThe physical existence of land supported by title deeds

Explanation

Written representations are suited to matters like management's intentions, where other evidence may be limited. Bank balances, ledger accuracy and land title can be evidenced externally or by re-performance and inspection. Representations are not a substitute for such available evidence.

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