Chapter 12: Written representation

Question 1

what is the format of written representation?

Answer 1

1) Prepare a draft management representation letter.
2) Ask the directors to sign it
3) Require its return as evidence before audit report is signed.

Question 2

What are the contents of the management representation letter?

Answer 2

• Confirmation that management has fulfilled its responsibility for the preperation of FS
• Conformation that all relevant information has been provided
• Conformation that all transactions have been recorded and reflected in the FS.

Question 2

When should the management letter be dated?

Answer 2

As near as possible to the due date of the audit report