[jimboace88]

I have a question in Becker asking me about items an AUDITOR would include in a management rep letter….

Am I losing my mind from constant studying? I’m pretty sure an AUDITOR would not include anything in a MANAGEMENT rep letter….right??

FAR 07/27/11 - 87
AUD 10/01/11 - 85
BEC 11/15/11 - 87
REG 01/03/12 - 92

[mla1169]

If I understand correctly (hope I do) the auditor actually writes the management representation letter and gives it to management to sign.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[jimboace88]

That makes zero sense to me since most of the other questions I encounter will say something like “does management include _______ in the rep letter?”

You could be right, though. At this point I have no idea! :-/

FAR 07/27/11 - 87
AUD 10/01/11 - 85
BEC 11/15/11 - 87
REG 01/03/12 - 92

[jimboace88]

Another thought: Also, management's refusal to provide a representation letter is a scope limitation sufficient to preclude an unqualified opinion–usually it results in disclaiming an opinion.

So I think it's safe to say there had to have been a typo in that question?

FAR 07/27/11 - 87
AUD 10/01/11 - 85
BEC 11/15/11 - 87
REG 01/03/12 - 92

[Anonymous]

I'm a tax person, and just starting to study for audit, so I don't know how credible I am. 😉

I'm on my first audit this week, and was getting a little confused when the manager on the audit told me to edit the rep letter. I asked, and she explained what mla said, that we write it, and give it to the client to sign like it's from them. There's a lot of requirements in terms of things that need to be in the letter, so I think we just write it to include everything we want them to attest to….and then they take responsibility for everything by signing it.

[Anonymous]

Hi. I'm an auditor and what the people above are saying is correct. In reality, we draft the Mgmt Rep Letter for them, but they are allowed to make edits. Typically, both parties need to agree on what is written in it…the client can't just leave out something significant even though they're responsible for the letter and have to sign it.

[jimboace88]

Thanks for all of the feedback! Is this one of those situations where the academic side will say one thing but real life will do another…or am I just reading too much into this?

I guess it really doesn't matter because I got the question right and have long since moved on…just curious.

FAR 07/27/11 - 87
AUD 10/01/11 - 85
BEC 11/15/11 - 87
REG 01/03/12 - 92

[Anonymous]

@ Jimbo

Haha…no idea. I haven't studied for audit yet, but I hope it'll be a breeze when I get there. Studying for REG is killing me! It'll be really funny if I fail audit after four years of doing it.

[Author]

Replies