Management representation letters Describe the purpose of the management representation letter
The purposes of the management representation letter are:
? It reminds management of its responsibility for the financial statements.
? It confirms oral responses obtained by the auditor earlier in the audit and the continuing appropriateness of those responses.
? It reduces the possibility of misunderstanding concerning matters that are the subject of representations.
The letter is typed on the client's letterhead, addressed to the auditor and signed by the CEO and the CFO.
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Indicate whether the statement is true or false