Write short notes on Management representation as an audit evidence

Auditing and Assurance Revision Questions and Answers

Answer
The management representation as an audit evidence:
 During the course of an audit, management makes many representations to the auditor, either unsolicited or in response to some specific enquiries.
 The auditor also should obtain representation from management, where considered appropriate and necessary.
 The management representation is taken to corroborate audit evidence, but representations management cannot be a substitute for other audit evidences that the auditor could reasonably expect to be reasonably available.
 In certain cases, where knowledge of facts is confined to management, a representation management may be the only audit evidence, which can reasonably be expected to be available.
 If a management representation is contradicted an available other audit evidence, the auditor should examine the circumstances and, when necessary, reconsider the reliability of other representations made management.



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