ASA 580 - Management Representations - April 2006
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Introduction
4 The purpose of this Auditing Standard is to establish mandatory requirements and provide explanatory guidance on the use of management representations as audit evidence, the procedures to be applied in evaluating and documenting management representations and the action to be taken if management refuses to provide appropriate representations.
5 The auditor shall endeavour to obtain appropriate representations from management.
6 In certain audit engagements some of the representations sought by the auditor from management are required to be given in other appropriate forms, for example the directors’ report and the directors’ declaration required under the Corporations Act 2001, or in meeting the requirements of other governing regulations of an entity. Where the directors or management make representations required by statute or regulation concerning the financial report, the auditor need not seek a further representation on those matters.