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PSA 580
PHILIPPINE STANDARD ON AUDITING 580
MANAGEMENT REPRESENTATIONS
CONTENTS
Paragraph
Introduction
1-2
4-9
10-14
15
Effective Date
16-17
Acknowledgment
18-19
PSA 580
The PSAs issued by the Auditing Standards and Practices Council (Council) are based
on International Standards on Auditing (ISAs) issued by the International Auditing and
Assurance Standards Board (formerly International Auditing Practices Committee) of
the International Federation of Accountants.
The ISAs on which the PSAs are based are generally applicable to the public sector,
including government business enterprises. However, the applicability of the
equivalent PSAs on Philippine public sector entities has not been addressed by the
Council. It is the understanding of the Council that this matter will be addressed by the
Commission on Audit itself in due course. Accordingly, the Public Sector Perspective
set out at the end of an ISA has not been adopted into the PSAs.
Deleted:
PSA 580
Introduction
1.
2.
5.
6.
PSA 580
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(a)
seek corroborative audit evidence from sources inside or outside the entity;
(b)
(c)
7.
8.
9.
PSA 580
-3-
11.
(b)
(c)
13.
A management representation letter would ordinarily be dated the same date as the
auditor's report. However, in certain circumstances, a separate representation
letter regarding specific transactions or other events may also be obtained during
the course of the audit or at a date after the date of the auditor's report, for
example, on the date of a public offering.
14.
PSA 580
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Effective Date
16.
This PSA is effective for audits of financial statements for periods ending on or
after December 31, 2003. Earlier application is permitted.
17.
Acknowledgment
18.
19.
There are no significant differences between this PSA and ISA 580.
PSA 580
-5-
This Philippine Standard on Auditing 580 was unanimously approved on January 20,
2003 by the members of the Auditing Standards and Practices Council:
Felicidad A. Abad
David L. Balangue
Eliseo A. Fernandez
Nestorio C. Roraldo
Editha O. Tuason
Joaquin P. Tolentino
Joycelyn J. Villaflores
Carlito B. Dimar
Froilan G. Ampil
Horace F. Dumlao
Isagani O. Santiago
Eugene T. Mateo
Emma M. Espina
Jesus E. G. Martinez
PSA 580
Appendix
We acknowledge our responsibility for the fair presentation of the financial statements in
accordance with generally accepted accounting principles in the Philippines.
We confirm, to the best of our knowledge and belief, the following representations:
Include here representations relevant to the entity. Such representations may include:
1.
If required add "On behalf of the board of directors (or similar body)."
PSA 580
Appendix
-2-
The Company has complied with all aspects of contractual agreements that could
have a material effect on the financial statements in the event of noncompliance.
There has been no noncompliance with requirements of regulatory authorities that
could have a material effect on the financial statements in the event of
noncompliance.
The following have been properly recorded and when appropriate, adequately
disclosed in the financial statements:
a) The identity of, and balances and transactions with, related parties.
b) Losses arising from sale and purchase commitments.
c) Agreements and options to buy back assets previously sold.
d) Assets pledged as collateral.
We have no plans or intentions that may materially alter the carrying value or
classification of assets and liabilities reflected in the financial statements.
The Company has satisfactory title to all assets and there are no liens or
encumbrances on the company's assets, except for those that are disclosed in Note
X to the financial statements.
Other than .. described in Note X to the financial statements, there have been
no events subsequent to period end which require adjustment of or disclosure in
the financial statements or Notes thereto.
PSA 580
Appendix
-3-
The claim by XYZ Company has been settled for the total sum of XXX which
has been properly accrued in the financial statements. No other claims in
connection with litigation have been or are expected to be received.
____________________
Senior Executive Officer
____________________
Senior Financial Officer