When considering the use of management's written representations as audit evidence about the completeness assertion, an auditor should understand that such representationsSelect one:a.Constitute sufficient evidence to support the assertion when considered in combination with a sufficiently low assessed level of control risk.b.Are not part of the evidence considered to support the assertion.c.Complement, but do not replace, substantive tests designed to support the assertion.d.Replace a low assessed level of control risk as evidence to support the assertion.
Question
When considering the use of management's written representations as audit evidence about the completeness assertion, an auditor should understand that such representationsSelect one:a.Constitute sufficient evidence to support the assertion when considered in combination with a sufficiently low assessed level of control risk.b.Are not part of the evidence considered to support the assertion.c.Complement, but do not replace, substantive tests designed to support the assertion.d.Replace a low assessed level of control risk as evidence to support the assertion.
Solution
The correct answer is c. Complement, but do not replace, substantive tests designed to support the assertion.
This is because management's written representations are a form of audit evidence, but they are not sufficient on their own to support an assertion. They can provide additional support to the findings from substantive tests, but they cannot replace these tests. Substantive tests are procedures performed by an auditor to detect material misstatements at the assertion level. They are a crucial part of the audit process and cannot be replaced by management's written representations.
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Which of the following types of evidence would an auditor most likely examine to determine whether controls are operating as designed?Select one:a.Letters of representations corroborating inventory pricing.b.Client records documenting the use of computer programs.c.Attorneys' responses to the auditor's inquiries.d.Confirmations of receivables verifying account balances.Clear my choice
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The auditor may consider it necessary to obtain written representations from management and, where appropriate, those charged with governance to confirm responses to oral inquiries.Select one:TrueFalse
Written representations – a written statement by management provided to the auditor to confirm certain matters or to support other audit evidence.Written representations in
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