What Happens If Management Refuses to Sign the Representation Letter?
Written representations are required audit evidence, but they do not replace other evidence.
Date
The written representation letter is generally dated as of the auditor's report date because it covers representations through the completion of the audit.
Content
Management confirms responsibilities and specified representations about the financial statements, information provided, fraud, subsequent events, and other required matters.
Not a substitute
Representations complement rather than replace other sufficient appropriate audit evidence.
Refusal
A refusal to provide required representations can raise serious questions about management integrity and can affect the auditor's opinion or ability to continue the engagement.
The takeaway
The representation letter is dated as of the auditor's report date, covers required matters, and a management refusal can create a serious scope limitation or integrity concern.
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FAQ
Is the representation letter dated before fieldwork begins?
No.
Can written representations replace all other evidence?
No.
Can management refusal affect the audit opinion?
Yes.