AUD 4.9 - Written Representation

Question 1

When should the auditor obtain a management representation letter?

Answer 1

At the conclusion of fieldwork

Question 2

Who prepares the management representation letter?

Answer 2

The client prints it on client letterhead and it is signed by the clietn

Question 3

The three primary purposes of the management representation letter are:

Answer 3

1. To confirm representation explicitly or implicitly given to the auditor
2. Indicate and document the continuing appropriateness of such representations
3. Reduce the possibility of missunderstanding

Question 4

The management representation letter should be dated when?

Answer 4

Same date of the auditors report

Question 5

Is the management representation letter mandatory to issue an unmodified opinion?

Answer 5

Yes

Question 6

Who signs the management representation letter?

Answer 6

Members of management with overall responsibility for the financial and operating matters (usually the CFO and CEO)

Question 7

The management representation letter should include the following representations:

Answer 7

Financial statements
Completeness of information
Fraud
Laws and regulations
Uncorrected misstatements
Litigation and claims
Estimates
Related party transactions
Subsequent events