Your Ask Joey ™ Answer

What is included in the management responsibility section of a written representation letter?

In the “Management Responsibility” section, the auditor should request written representations from management with appropriate responsibilities for the financial statements and knowledge of the matters concerned. The auditor should request management to provide a written representation that it has fulfilled its responsibility, as set out in the terms of the audit engagement.

1) For the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework; and

2) For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error

Back To All Questions

You might also be interested in...

  • Three Reasons to Become an Accountant

    If you’re someone who is intrigued by numbers, enjoys problem-solving and wants to help others, then accounting might be the perfect career for you. While some people may be put off by its unalluring reputation, accounting is an excellent career choice that has many benefits. In this article, we look at three of the reasons...

  • Qualified Retirement Planning: Tax Advantages & Disadvantages

    Home Advantages and Disadvantages of Tax-Free and Deferred-Tax Retirement Plans What are “qualified retirement plans” and how can they be effective for tax planning? Well, there are plenty of tax savings advantages to individuals contributing to tax-free retirement accounts, as well as tax-deferred retirement accounts. However, this doesn’t necessarily mean that there are no disadvantages...

  • CPA Evolution Survival Guide

    Download Your eBook by selecting the download icon in the top right-hand corner