Written Representations M9

Question 1

What is the objective of the management rep letter?

Answer 1

• The final piece of evidential matter
• Its purpose is to confirm representations provided implicitly or explicitly to the auditor.

Question 2

What type of evidence does the rep letter contain?

Answer 2

• Matters that may affect recognition, measurement, and disclosure.
• Management’s plans to discontinue a line of business may affect financial statement disclosure
• Held for sale” would be reported separately in the income statement under “discontinued operations.”