[jrzycpa]

Am I misreading this question or is the WTB listing the wrong answer? I’m second guessing myself and I’m retesting tomorrow morning!

Question 9:

EVID-0144

Hall accepted an engagement to audit the year 1 financial statements of XYZ Company. XYZ completed the preparation of the year 1 financial statements on February 13, year 2, and Hall began the audit work on February 17, year 2. Hall completed the audit work on March 24, year 2, and completed the report on March 28, year 2. The client’s representation letter normally would be dated

A.) February 13, year 2.

B.) February 17, year 2.

C.) March 24, year 2.

D.) March 28, year 2.

I chose “D”. WTB states that’s incorrect, that the correct answer is “C” with the following explanation.

This answer is incorrect because the representation letter is not dated as of the date the auditor’s report is completed.

According to the AICPA guideline website:

AU-C Section 580

Written Representations

Date of, and Period(s) Covered by, Written Representations

.20

The date of the written representations should be as of the date of the auditor’s report on the financial statements. The written representations should be for all financial statements and period(s) referred to in the auditor’s report.

[CanIpassYou Aud]

As you can see i failed audit three times already, maybe i am wrong. This is how i interpret this question. On March 24th, the audit team already gathered sufficient and appropriate audit evidence to support their opinion on Mgt's fairness presentation of the F/S therefore the mgt has to provide a written representation to the auditor that everything mgt asserted in the F/S are truthful. think about it does mgt know when the audit report will be COMPLETED? the answer is NO and that is the reason why the date of the written representations should be as of the date of the auditor’s report on the financial statements. (it does not mention the word COMPLETED)

I hope u understand. I could be wrong. GL on your retake tmr and read questions carefully!!!

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[Anonymous]

CanIpass is correct. The date of the audit report will be March 24th. Management rep letters are dated the same date as the audit report.

March 24th is the date that the auditors had sufficient evidence to support their opinion, and then it took them 4 days to write the report, but will date it when they had the evidence.

Hope this helps, and good luck in the morning!

Just remember, when in doubt, C works! 🙂

[Author]

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