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CA Intermediate · Auditing and Ethics · Completion and Review

While auditing Kaveri Textiles Ltd for the year ended 31 March, the auditor, CA Rohan, completes his procedures and notes that the management has not yet signed the financial statements. He wishes to obtain a written representation from management at the end of the audit. Under SA 580, what should be the date of the written representations?

The written representations should be dated as near as practicable to, but not after, the date of the auditor's report. This ensures that management's confirmations cover the whole audit and relevant events up to the report date, so the auditor can rely on them when forming the opinion.

  1. AAs near as practicable to, but not after, the date of the auditor's report on the financial statementsCorrect
  2. BAny date within the financial year under audit
  3. CThe date of the first meeting with those charged with governance at the planning stage
  4. DA date after the date of the auditor's report, once the annual general meeting is held

Explanation

SA 580 requires written representations to be dated as near as practicable to, but not after, the date of the auditor's report on the financial statements. A date after the report would mean the auditor signed without having the representations, and a planning-stage date would not cover the full audit period or later events.

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