The Management of Sun Shine Ltd. has provided the auditor with a written representation regarding its. responsibilities for the preparation of the…

As per SA 580, “Written Representations”, in addition to the written representation about management's responsibilities regarding preparation of financial statements, the auditor may consider it necessary to request other written representations about the financial statements. Other representations which may supplement, but do not form part of the written representation relating to management's responsibilities regarding preparation of financial statements are the following: (i) Whether the selection and application of accounting policies are appropriate; and (ii) Whether matters such as the following, where relevant under the applicable financial reporting framework, have been recognized, measured, presented or disclosed in accordance with that framework: Plans or intentions that may affect the carrying value or classification of assets and liabilities;Liabilities, both actual and contingent;Title to, or control over, assets, the liens or encumbrances on assets, and assets pledged as collateral; andAspects of laws, regulations and contractual agreements that may affect the financial statements, including non-compliance.