OPQ Infrastructure Ltd. is engaged in the construction of large industrial projects. The company has significant estimates in its financial…

Written representation about management's responsibilities involves confirmation of fulfilment of management's responsibilities in the preparation of the financial statements: The auditor shall request management to provide a written representation that it has fulfilled its responsibility for the preparation of the financial statements in accordance with the applicable financial reporting framework, including, where relevant, their fair presentation, as set out in the terms of the audit engagement. Due to its responsibility for the preparation and presentation of the financial statements and its responsibilities for the conduct of the entity's business, management would be expected to have sufficient knowledge of the process followed by the entity in preparing and presenting the financial statements and the assertions therein on which to base the written representations. In some cases, however, management may decide to make inquiries of others who participate in preparing and presenting the financial statements and assertions therein, including individuals who have specialized knowledge relating to the matters about which written representations are requested. Such individuals may include: An actuary responsible for actuarially determined accounting measurements.Staff engineers who may have responsibility for and specialized knowledge about environmental liability measurements.Internal counsel who may provide information essential to provisions for legal claims. In some cases, management may include in the written representations qualifying language to the effect that representations are made to the best of its knowledge and belief. It is reasonable for the auditor to accept such wording if the auditor is satisfied that the representations are being made by those with appropriate responsibilities and knowledge of the matters included in the representations. To reinforce the need for management to make informed representations, the auditor may request that management include in the written representations confirmation that it has made such inquiries as it considered appropriate to place it in the position to be able to make the requested written representations. In the given case, the auditor may obtain written representations from management confirming that it has fulfilled its responsibility for the preparation and fair presentation of the financial statements. The inclusion of the phrase "to the best of its knowledge and belief” in the written representation may be accepted by the auditor, provided the auditor is satisfied that the representation is being made by management having appropriate responsibility and adequate knowledge of the matters concerned.