LETTER OF REPRESENTATION
Auditors seek a letter of representation in order to obtain written audit evidence on matters that are material to the financial statements when other sufficient appropriate audit evidence cannot reasonably be expected to exist (ISA 580 ‗Management Representations‘).
Representations may be the only evidence, which can reasonably be expected to be available, but they cannot be a substitute for other audit evidence that could reasonably be expected to be available. Such matters may include management‘s intention to hold an item for long-term appreciation.
The letter also ensures that directors acknowledge their collective responsibility for the presentation and approval of the financial statements. The letter is signed by those with knowledge of the matters concerned, on behalf of management
Post navigation
Recent Posts
The person specification is a development from the job description. Required: Briefly describe the way in which a person specification differs from a job description
An important part of management understands the role of leadership. Required: Describe Blake and Mouton’s Managerial Grid
The person specification is a development from the job description. Required: Explain what is meant by the terms: person specification and job description
Appraisal systems are increasingly being used to measure performance within organizations. Required: Describe the benefits of performance appraisal systems for: the organization; the line manager and the individual
The person specification is a development from the job description. Required: Summarise the purposes for which a person specification might be used
All organisations need to recruit new employees. An important step in the process is the selection interview. Required: Explain the advantages and the disadvantages of: the interview by one person defined as the face to face interview; the interview with many people defined as the panel interview
An important part of management understands the role of leadership. Required: Discuss the relevance to management of Blake and Mouton’s grid in understanding leadership styles
Greg Pye is the chief executive of a medium sized company that traditionally has been organized hierarchically according to function. After attending a management seminar, he decided to encourage inter-functional departmental co-operation by implementing a matrix structure in the organization. Greg agreed that a matrix organization and cross-functional team working would provide flexibility and enhanced performance to the organization. However, the company secretary drew Greg’s attention to some potential drawbacks. These include the possibility that people won’t know who they are meant to be reporting to, supervision will be difficult for their line manager who thinks they are working in their teams and team leaders will have no real authority over the team members. After speaking to the company secretary, Greg began to have second thoughts about the matrix structure. Greg decides to ask for a more considered view of restructuring the company. Required: Greg Pye has asked you to explain: How it might be possible to gain some of the benefits of a matrix structure without fully restructuring the organization
Greg Pye is the chief executive of a medium sized company that traditionally has been organized hierarchically according to function. After attending a management seminar, he decided to encourage inter-functional departmental co-operation by implementing a matrix structure in the organization. Greg agreed that a matrix organization and cross-functional team working would provide flexibility and enhanced performance to the organization. However, the company secretary drew Greg’s attention to some potential drawbacks. These include the possibility that people won’t know who they are meant to be reporting to, supervision will be difficult for their line manager who thinks they are working in their teams and team leaders will have no real authority over the team members. After speaking to the company secretary, Greg began to have second thoughts about the matrix structure. Greg decides to ask for a more considered view of restructuring the company. Required: Greg Pye has asked you to explain: How Greg and his management team can address the concerns expressed by the company secretary
Greg Pye is the chief executive of a medium sized company that traditionally has been organized hierarchically according to function. After attending a management seminar, he decided to encourage inter-functional departmental co-operation by implementing a matrix structure in the organization. Greg agreed that a matrix organization and cross-functional team working would provide flexibility and enhanced performance to the organization. However, the company secretary drew Greg’s attention to some potential drawbacks. These include the possibility that people won’t know who they are meant to be reporting to, supervision will be difficult for their line manager who thinks they are working in their teams and team leaders will have no real authority over the team members. After speaking to the company secretary, Greg began to have second thoughts about the matrix structure. Greg decides to ask for a more considered view of restructuring the company. Required: Greg Pye has asked you to explain: The advantages of the existing hierarchical structure
