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hello gromit
please advise what will be implications on audit report in relation to the following management reps:
1) If management refuses to provide written representations about their
responsibilities2) If management provides a letter confirming their estimate of a provision or any other thing however the auditor does not have any other evidence
3) if their is doubt on managements integrity. in this case i am presuming that the auditor simply will not ask for these letters
1 If management refuses to provide a representation that the auditor considers necessary, this constitutes a scope limitation and the auditor should express a qualified opinion or a disclaimer of opinion.
2 Representations by management cannot be a substitute for other audit evidence that the auditor could reasonably expect to be available. For example, a representation by management as to the cost of an asset is not a substitute for the audit evidence of such cost that an auditor would ordinarily expect to obtain. If the auditor is unable to obtain sufficient appropriate audit evidence regarding a matter which has, or may have, a material effect on the financial statements and such audit evidence is expected to be available, this will constitute a limitation in the scope of the audit, even if a representation from management has been received on the matter.
3 The letter would still be asked for because that is a requirement under ISA 580.
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