Dating management representation letter
Because written representations are necessary audit evidence, auditors are precluded from having their reports dated in advance of the effective date of the management representations included in the representation letter.In circumstances in which auditors question the integrity of management in a manner so that written representations provided by management related to the preparation and fair presentation of the financial statements and the information provided and completeness of transactions, the only options available would be to disclaim an opinion on the financial statements or to withdraw from the audit engagement.Here I post a management representation letter example.We are providing this letter in connection with your audit(s) of the [identification of financial statements] of [name of entity] as of [dates] and for the [periods] for the purpose of expressing an opinion as to whether the [consolidated] financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of [name of entity] in conformity with generally accepted accounting principles.However, with the introduction of the CASs an Assurance and Related Services Guideline (Au G) was introduced that clarified the meaning of substantial completion.Paragraph 3 of Au G-47 Dating the Review Engagement Report on Financial Statements states the following: Au G-47.3 - The date of the public accountant's report is intended to signify to the reader the date as of which the public accountant expresses his or her conclusion.
CSQC 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance Engagements, paragraph 36, states that when an engagement quality control review is performed, the practitioner shall not date the practitioner's report until the completion of the engagement quality control review.
the auditor has the responsibility to obtain written representations from management and, when appropriate, those charged with governance.
The written representations contemplated within AU-C 580 are deemed necessary as an integral part of fulfilling communication requirements in each financial statement audit.
The reader is entitled to assume that the public accountant has performed sufficient procedures to that date to support the conclusion expressed in his or her report.
The public accountant expresses his or her conclusion on the financial statements and the financial statements are the responsibility of management.
Both the old and new statements explain that management will make various representations to the auditor throughout the course of an audit, mainly as a response to specific questions or through the financial statements themselves.