Who is required to provide written representations during an audit?

During an audit, written representations must be provided by both service organizations and subservice organizations. This is crucial because it ensures that the auditors obtain formal acknowledgment from management regarding the accuracy and completeness of the information supplied as part of the audit process.

Service organizations often handle critical functions for their clients, and auditors need to confirm that the service provided meets the necessary standards and controls. When it comes to subservice organizations, particularly when the inclusive method is adopted, these entities also play a significant role in the operations of the service organization. Therefore, obtaining written representations from both types of organizations is essential for the auditor to form an accurate opinion regarding the effectiveness of controls and the reliability of reported information.

By requiring these written confirmations, auditors can establish accountability and verify that both organizations have provided truthful representations about their systems, processes, and any relevant risks. This step is integral to ensuring that the overall audit process is thorough and reliable.