ASRE 2410 - Review of an Interim Financial Report Performed by the Independent Auditor of the Entity - April 2006
Management RepresentationsManagement Representations
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Management Representations
55 The auditor shall endeavour to obtain written representation from management that:
(a) they acknowledge their responsibility for the design and implementation of internal control to prevent and detect fraud and error;
(b) the interim financial report is prepared and presented in accordance with the applicable financial reporting framework;
(c) they believe the effect of those uncorrected misstatements aggregated by the auditor during the review are immaterial, both individually and in the aggregate, to the interim financial report taken as a whole. A summary of such items is included in or attached to the written representations;
(d) they have disclosed to the auditor all significant facts relating to any frauds or suspected frauds known to them that may have affected the entity;
(e) they have disclosed to the auditor the results of their assessment of the risk that the interim financial report may be materially misstated as a result of fraud;
(f) they have disclosed to the auditor all known actual or possible non-compliance with laws and regulations the effects of which are to be considered when preparing the interim financial report; and
(g) they have disclosed to the auditor all significant events that have occurred subsequent to the balance sheet date and through to the date of the review report that may require adjustment to or disclosure in the interim financial report.
56 Under paragraph 55 of this Auditing Standard, the auditor needs to endeavour to obtain additional representations as are appropriate to matters specific to the entity’s business or industry. An illustrative management representation letter is set out in Appendix 1 to this Auditing Standard.
57 If those charged with governance refuse to provide a written representation that the auditor considers necessary, this constitutes a limitation on the scope of the auditor’s work and the auditor shall express a qualified conclusion or a disclaimer of conclusion.