Section Written Representations (Ref: Para. 37) - Auditing Standard ASA 540 Auditing Accounting Estimates and Related Disclosures - Written Representations (Ref: Para. 37)

Written Representations (Ref: Para. 37)Written Representations (Ref: Para. 37)

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Written representations about specific accounting estimates may include representations:

That the significant judgements made in making the accounting estimates have taken into account all relevant information of which management is aware.
About the consistency and appropriateness in the selection or application of the methods, assumptions and data used by management in making the accounting estimates.
That the assumptions appropriately reflect management’s intent and ability to carry out specific courses of action on behalf of the entity, when relevant to the accounting estimates and disclosures.
That disclosures related to accounting estimates, including disclosures describing estimation uncertainty, are complete and are reasonable in the context of the applicable financial reporting framework.
That appropriate specialised skills or expertise has been applied in making the accounting estimates.
That no subsequent event requires adjustment to the accounting estimates and related disclosures included in the financial report.
When accounting estimates are not recognised or disclosed in the financial report, about the appropriateness of management’s decision that the recognition or disclosure criteria of the applicable financial reporting framework have not been met.