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Written representations and subsequent events

AUD Chapter 25 · Area III · Blueprint III.G–H

These are the last steps before the report is signed. The representation letter is tested by recall: what goes in it, who signs and what date it carries. Subsequent events are tested by dates and by one sorting question you will see many times: adjust or disclose?

In this chapter

1. The representation letter: what it is and is not
2. Who signs, what date, which periods
3. What the letter must say
4. When management will not sign, or cannot be believed
5. Subsequent events: two types
6. Procedures to find subsequent events
7. Facts discovered after the report date

This chapter has 7 lessons, 50 practice MCQs with explanations and 10 simulations, plus flashcards and a recall sheet.

What this chapter covers

• The representation letter
• procedures to find subsequent events
• adjust or disclose
• subsequently discovered facts and the auditor's report

Chapter 24: Misstatements and internal control deficiencies · Chapter 26: Audit reports and opinions