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What Is a Representation Letter? What? The Letter of Representations is a letter written from the Association to its accountant representing that the financial statements for the time period covered by the engagement are the responsibility of "management".
Client representation letters are generally useful in providing information about matters that cannot be objectively tested because they depend on management's knowledge, such as the board's intentions and the completeness of information provided to the auditor.
A ?rep? letter is the audit teams' formal evidence that management understands their responsibilities and that management has performed all of their responsibilities.
It is a written contract between the auditor and the client, stating both parties' understanding of the professional relationship.
The auditor corroborates your representations and offers an opinion on the financial statements. However, that does not lessen your responsibility for those statements. A representation letter documents informa tion relating to your knowledge of the entity and your intentions.
What to include in an audit engagement letter The auditor's responsibilities include: ... The management's responsibilities include: ... The relevant financial reporting framework. ... The objective and scope of the audit engagement. ... Estimated fee and billing schedule. ... Type and scope of the audit report to be issued.
Written representation ? A written statement by management provided to the auditor to confirm certain matters or to support other audit evidence.
Management Letter means a letter prepared by the auditor which discusses findings and recommendations for improvements in internal control, that were identified during the audit and were not required to be included in the auditor's report on internal control, and other management issues.