The representation letter is signed on the date of the auditor's report. In it, management states its responsibility for preparing the financial statements, that all records and information have been provided to the auditor, any known instances of fraud and related party transactions.
Management representations alone are not sufficient audit evidence; however, failure to provide a representation letter may prevent an opinion from being expressed.
Source: BDS 580
Related terms
Audit evidenceAny information and documents the auditor uses to reach the conclusions on which the opinion is based.Independent auditor's reportThe formal report in which the auditor sets out in writing the opinion reached on the financial statements and the basis for that opinion.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.Assurance engagementAn engagement providing assurance, against specified criteria, on a subject matter other than an audit or review of historical financial information.
Last updated: October 22, 2026 · This definition is for general information only.