ACCA · Question 10 · Audit evidence
CASE 2: GREENYIELD AGRI CO-OP
GreenYield Agri Co-op is a large agricultural cooperative specializing in organic crop production and livestock. You are the audit senior. The year-end is 31 December 2025. GreenYield uses an independent agronomist to value its biological assets. During the year, a new computerized inventory system was implemented. The audit team is planning the inventory count attendance and evaluating the reliability of the agronomist's report.
Management has informed you that a specific herd of cattle is intended to be sold in January 2026 at a premium price due to a special organic certification. You require a written representation regarding management's intent. What is the primary limitation of this written representation?
Answer options:
It is not legally binding and therefore cannot be included in the audit file.
It does not provide sufficient appropriate audit evidence on its own and must be corroborated.
It can only be signed by the independent agronomist, not management.
It is only valid if obtained before the financial year-end.
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