What is Management representation letter?
In short
A management representation letter contains written statements from management confirming matters such as its responsibilities for the financial statements and that it has given the auditor all relevant information.
Key takeaways
- It is dated as of the auditor's report date and covers all periods in the report.
- It is signed by those with overall responsibility, usually the chief executive and chief financial officer.
- It supports but never replaces other audit evidence; if management refuses to provide it, the auditor disclaims or withdraws.
Where it's tested
AUD: Written Representations & Completing the Audit — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Management refuses to sign the written representation letter at the conclusion of the audit. What is the appropriate response?