During the statutory audit of Orion Manufacturing Ltd., the auditor, CA Raghav Mehta, observed that the company's management had changed during the…

As per SA 580 "Written Representations", the date of the written representations shall be as near as practicable to, but not after, the date of the auditor's report on the financial statements. The written representations shall be for all financial statements and period(s) referred to in the auditor's report. Because written representations are necessary audit evidence, the auditor's opinion cannot be expressed, and the auditor's report cannot be dated, before the date of the written representations. Furthermore, because the auditor is concerned with events occurring up to the date of the auditor's report that may require adjustment to or disclosure in the financial statements, the written representations are dated as near as practicable to, but not after, the date of the auditor's report on the financial statements. The written representations are for all periods referred to in the auditor's report because management needs to reaffirm that the written representations it previously made with respect to the prior periods remain appropriate. Situations may arise where current management were not present during all periods referred to in the auditor's report. Such persons may assert that they are not in a position to provide some or all of the written representations because they were not in place during the period. This fact, however, does not diminish such persons' responsibilities for the financial statements as a whole. Accordingly, the requirement for the auditor to request from them written representations that cover the whole of the relevant period(s) still applies. In the given case, CA Raghav Mehta should obtain written representations from the current management as near as practicable to, but not after, the date of the auditor's report. Further, such written representations must cover the entire financial year referred to in the auditor's report, including the period during which the previous management was in charge. The inability of the current management to have been present during the earlier period does not reduce its responsibility for the financial statements as a whole. Therefore, the auditor is still required to request written representations covering the whole relevant period in accordance with SA 580.