Ican 2023 Audit And Assurance Question 1

Promise and Treasure are two good childhood friends. After their secondary education, Promise travelled abroad to further his education. He did his first degree and second degree over there. Treasure had his own education in Nigeria, he attended a university in the Southwest. He came out with a second class lower degree. During his sojourn abroad, Promise met with some foreigners to join hands together to set up a company in Nigeria. Promise invited his childhood friend to join them in the business. They formed a company called Promise and Treasure Company Nigeria Limited. They are into importation of steel products, with the intention of setting up a factory to produce steel products in future. The first year accounts were made up to December 31, 2020. Your firm has been appointed as auditors to the company. At the completion of the audit, you requested for a written representation from the management. This request was strange to the Managing Director of Promise and Treasure Company Nigeria Limited, because according to him, they have given your firm all necessary information and documents needed to carry out the audit.