Raman Mahaseth, the auditor of a company has signed the audit report on 15 Asoj 2071. He has obtained written representation from the management of the company dated 15 kartik 2071; i.e. the date of the annual general meeting of the company. Give your opinion on the above.
Because written representations are necessary audit evidence, the auditor‟s opinion cannot be expressed, and the auditor‟s report cannot be dated, before the date of the written representations. Furthermore, because the auditor is concerned with events occurring up to the date of the auditor‟s report that may require adjustment to or disclosure in the financial statements, the written representations are dated as near as practicable to, but not after, the date of the auditor‟s report on the financial statements.
In some circumstances, it may be appropriate for the auditor to obtain a written representation about a specific assertion in the financial statements during the course of the audit. Where this is the case, it may be necessary to request an updated written representation.
So, in the given case the written representation cannot be considered as appropriate audit evidence because it was not obtained on or before the audit report date.