How should the auditor respond if management refuses to or does not provide the written representations requested by him her?

(c) If the management refuses to provide written representation, the auditor will issue a qualified report or disclaimer. As part of the audit process, the management provides written representation to confirm certain matters in connection with the audit.

What is the auditor’s responsibility with regard to written representations?

The auditor obtains written representations from management to complement other auditing procedures. The auditor should obtain this written representation even if the results of those procedures indicate that relationships and transactions with related parties have been properly accounted for and adequately disclosed.

Is a management representation letter required for an audit?

An auditor typically will not issue an opinion on a company’s financial statements without first receiving a signed management representation letter. The Public Company Accounting Oversight Board provides considerable detail regarding the content of a management representation letter in its AU Section 333.

What type of opinion is most appropriate when management does not provide written representations about its responsibility for the preparation of the financial statements?

Expressing a qualified opinion or adverse opinion is appropriate when management does not amend the financial statements in circumstances where the auditor believes they need to be amended but the auditor’s report has already been released to the entity, what should the auditor do?

What type of audit opinion should be expressed if the client’s management refuses to provide a representation that the auditor considers necessary?

If management refuses to provide a representation that the auditor considers necessary, this constitutes a scope limitation and the auditor should express a qualified opinion or a disclaimer of opinion.

What is letter of weakness in auditing?

Letter of weakness: a letter/report sent from auditors to BOD advising them of any particular control weaknesses they have identified during the audit, and suggestions to remedy these.

Where management will not acknowledge its responsibilities or agree to provide the written representation The auditor will?

ISA 580 states that when management refuses to provide necessary representations, the auditor should qualify or disclaim his or her opinion. The refusal to provide written representations implies management’s unwillingness to accept responsibility and accountability for the financial statements.

Which audit report will you issue if the client fails to provide a letter of representation?

If a CPA cannot obtain a signed representation letter in an audit, the auditor will be required to change the report to a “qualified report” (as compared with an “unqualified” or “clean” opinion), if limited representations can be obtained or will need too “disclaim” an opinion or “withdraw” from an engagement if no …

What are the audit implications if management refuses to give a representation letter?

What is the purpose of a management letter in an audit?

Management Letter means a letter prepared by the auditor which discusses findings and recommendations for improvements in internal control, that were identified during the audit and were not required to be included in the auditor’s report on internal control, and other management issues.

Which audit opinion should the auditor give if management refuse to provide the auditors with a written representation letter?

What should the auditor do if the written representation letter are inconsistent with other audit evidence?

If the auditor concludes that the written representations are not reliable, the auditor shall take appropriate actions, including determining the possible effect on the opinion in the auditor’s report in accordance with ISA 705,4 having regard to the requirement in paragraph 20 of this ISA.

Can auditors require management to make any representation during the audit?

Auditors cannot require management to do anything or to make any representation. However, to conclude the audit with the hope of a “clean” unqualified opinion issued by the auditor, management has to assume the responsibility for the financial statements.

How do you write a representation letter to an auditor?

As one of their required procedures, auditors ask management to communicate management’s responsibility for the financial statements to the auditor in a representation letter. The auditor concludes the engagement by using those same words regarding management’s responsibility in the first paragraph of the auditor’s report.

What happens if the management refuses to provide written representation?

(c) If the management refuses to provide written representation, the auditor will issue a qualified report or disclaimer. As part of the audit process, the management provides written representation to confirm certain matters in connection with the audit.

Can an auditor issue an opinion on a company’s financial statements?

An auditor typically will not issue an opinion on a company’s financial statements without first receiving a signed management representation letter. The Public Company Accounting Oversight Board provides considerable detail regarding the content of a management representation letter in its AU Section 333.