When considering the use of management's written representations as audit evidence about the completeness assertion, an auditor should understand that such representations
A) Complement, but do not replace, substantive procedures designed to support the assertion.
B) Constitute sufficient evidence to support the assertion when considered in combination with reliance on internal controls.
C) Are not part of the evidential matter considered to support the assertion.
D) Replace reliance on internal controls as evidence to support the assertion.

Question

Quizplus · Accepted Answer

Management's written representations can provide corroborative evidence but cannot replace substantive procedures. Therefore, choice A is the most appropriate option. Choice B is incorrect because relying only on management's written representation and internal controls is insufficient for the audit of financial statements. Choice C is incorrect because management's written representations are a part of the evidential matter considered to support audit assertions. Choice D is incorrect because management's written representations cannot replace internal control testing as evidence to support the assertion.

When Considering the Use of Management's Written Representations as Audit