Written Representations & Completing the Audit

Misstatements

Accumulate (above clearly trivial) · classify factual, judgmental, projected · request correction · evaluate uncorrected in aggregate.

Subsequent events

• Year-end → report date: active search (minutes, interim statements, inquiries, lawyers' letters).
• Report date → release: passive.
• Dual dating: responsibility only for that note. Redating: all events to the new date.

After release

• Subsequently discovered facts: discuss → revise and reissue; if refused and users rely → prevent reliance (notify regulators, users).
• Omitted procedure impairing the opinion → perform it promptly.

Representation letter

• From the chief executive officer (CEO) and chief financial officer (CFO), addressed to the auditor, dated = report date.
• Covers fraud, related parties, completeness, subsequent events, uncorrected misstatements.
• Refusal → disclaimer or withdraw.

Governance communications

Scope and timing · significant findings · disagreements · difficulties · uncorrected misstatements.

Exam traps

• Written representations complement other evidence; they never replace it.
• The representation letter covers all periods in the report, even if current management wasn't in place for all of them.
• The lawyer's letter should be dated close to the report date, so it covers events up to then.