TRP Ltd. is a holding company with three subsidiaries namely T Manufacturing Pvt. Ltd., R Traders Ltd. and P Services Pvt. Ltd. While auditing the…

SA 580, “Written Representations”, requires the auditor to obtain written representations from management and, where appropriate, those charged with governance. The auditor of the consolidated financial statements should obtain evidence that the management of the parent acknowledges its responsibility for a true and fair presentation of the consolidated financial statements in accordance with the financial reporting framework applicable to the parent and that parent management has approved the consolidated financial statements. In addition, the auditor of the consolidated financial statements obtains written representations from parent management on matters material to the consolidated financial statements. Examples of such representations include: (i) Completeness of components included in the CFS; (ii) Identification of reportable segments for segmental reporting; (iii) Identification of related parties and related party transactions for reporting; (iv) Appropriateness and completeness of permanent and current period consolidation adjustments, including the elimination of intra-group transactions. In the given situation, the auditor should request written representations from the management of TRP Ltd., specifically acknowledging its responsibility for and approval of the consolidated financial statements. If such written representations are not provided, the auditor should express the opinion accordingly.