Towards the end of an audit, it is common for the external auditor to seek a letter of representation (written representations) from the management of the client company. Required: List the matters commonly included in the letter of representation

  • Common categories of matters included in the letter of representation
  •  Confirmation of responsibility for, and approval of, the financial statements.
  •  Confirmation that all of the accounting records, and all related documentation (such as minutes of management and shareholder meetings) have been made available, and that company transactions have been properly reflected therein.
  •  Confirmation of the expected outcome of legal claims.
  •  Confirmation of company plans in relation to certain tax provisions.
  •  Confirmation of the completeness of disclosure of related party transactions.
  •  Confirmation that there have been no post-balance sheet events that require revisions to the financial statements



Share through

Leave a Reply

Your email address will not be published.