Questions about Management Representation Letter

  • Creator
    Topic
  • #188456
    Anonymous
    Inactive

    I have a question about management representation letter, is it from Management to auditor or from the auditor to management? I understand the auditor prepared the letter and the management signs on it then return it back to the auditor, so it kind of confuses me. And also, can management representation letter be oral?

    Please help

Viewing 6 replies - 1 through 6 (of 6 total)
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    Replies
  • #597313
    mhueycpa
    Participant

    Mgmt Rep Ltr comes from Management to Auditor. It is necessary for every attestation service and. The auditor must quit the engagement if Mgmt refuses to sign ltr.

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    #597314
    Anonymous
    Inactive

    Think about it this way – auditor provides management with a template for the mgmt rep letter. Management then writes the letter, signed it, and sends back to auditor. It MUST be in writing.

    #597315
    acamp
    Participant

    Auditor says, here's a template with everything we want you to rep to.

    The Client might make adjustments (with auditor agreement), signs the letter and furnishes to the auditor.

    So, its written by the auditor, but technically it comes from management.

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    #597316
    Anonymous
    Inactive

    OK, Thanks a lot.

    #597317
    Ken
    Member

    Haha,

    This sounds familiar…Be careful not to review any exam material!!

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    #597318
    Anonymous
    Inactive

    acamp is correct.

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