A letter of representation is a formal letter prepared by us and signed by a member of senior management. In the letter, management attests to the accuracy and completeness of the information provided to us for our analysis.
If we are performing a review of your financial statements you will be required to sign a representation letter.
There are specific guidelines you will need to follow when you have engaged with us to review your financial statements. These rules are important because when a third-party user (such as your bank) receives your “reviewed” financial statements there is a presumption that certain procedures have been followed.
Those procedures require us to obtain written representations. Not only are written representations considered additional review evidence, there are certain specific representations that are required to be included in the representation letter.