An Interactive Guide to Written Representations
Making a critical audit step understandable.
What is a Management Representation Letter?
At the conclusion of an audit, the auditor must obtain a formal letter from the client's senior management. This "management representation letter" confirms key statements made to the auditor during the engagement. This application breaks down the purpose, requirements, and contents of this crucial document.
Confirm
Confirms representations given to the auditor.
Document
Documents the appropriateness of those representations.
Clarify
Reduces misunderstandings on important matters.
The Lifecycle of the Letter
This is the typical flow for preparing and obtaining the representation letter. Click each step for a brief explanation.
1. Auditor Prepares Draft
2. Management Reviews
3. Management Signs
4. Auditor Receives Letter
5. Audit Report Released
Key Requirements & Consequences
The representation letter isn't just a formality; it's governed by strict auditing standards. Click each item to expand.
Deconstructing the Letter
What exactly does management have to confirm? Click on a topic from the list to see the corresponding section in a sample letter and a detailed explanation.
Letter Topics
Explanation
Sample Letter Snippet
Click a topic to highlight the relevant text here.Additional Representations for Special Audits
Some audits require additional, specific representations from management. Select a scenario to see what extra confirmations are needed.
