| A7. | Audit evidence obtained during the audit that management has fulfilled the responsibilities referred to in paragraphs 10 and 11 is not sufficient without obtaining confirmation from management that it believes that it has fulfilled those responsibilities. This is because the auditor is not able to judge solely on other audit evidence whether management has prepared and presented the financial statements and provided information to the auditor on the basis of the agreed acknowledgement and understanding of its responsibilities. For example, the auditor could not conclude that management has provided the auditor with all relevant information agreed in the terms of the audit engagement without asking it whether, and receiving confirmation that, such information has been provided. |
| A7-1. | A signed copy of the financial statements for a company may be sufficient evidence of the directors' acknowledgement of their collective responsibility for the preparation of the financial statements where it incorporates a statement to that effect. A signed copy of the financial statements, however, is not, by itself, sufficient appropriate evidence to confirm other representations given to the auditor as it does not, ordinarily, clearly identify and explain the specific separate representations. |
| A8. | The written representations required by paragraphs 10 and 11 draw on the agreed acknowledgement and understanding of management of its responsibilities in the terms of the audit engagement by requesting confirmation that it has fulfilled them. The auditor may also ask management to reconfirm its acknowledgement and understanding of those responsibilities in written representations. This is common in certain jurisdictions, but in any event may be particularly appropriate when: |
| Those who signed the terms of the audit engagement on behalf of the entity no longer have the relevant responsibilities; |
| The terms of the audit engagement were prepared in a previous year; |
| There is any indication that management misunderstands those responsibilities; or |
| Changes in circumstances make it appropriate to do so. |
| Consistent with the requirement of ISA (UK and Ireland) 210,5 such reconfirmation of management's acknowledgement and understanding of its responsibilities is not made subject to the best of management's knowledge and belief (as discussed in paragraph A5 of this ISA (UK and Ireland)). |
| A8-1 | Although reconfirmation of management's acknowledgement and understanding of its responsibilities is not made subject to the best of management's knowledge and belief, as discussed in paragraph A8, this does not prevent management from stating that the written representations required by paragraphs 10 and 11 relating to the fulfillment of its responsibilities are given to the best of its knowledge and belief. |
| 5 ISA (UK and Ireland) 210, paragraph 6(b). |
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