representation letter

representation letter
A document signed by the management of an organization and addressed to an external auditor that states financial statements are fairly presented and free from *fraud, *misstatements, or other irregularities. Representation letters can cover individual items in financial statements, or financial statements as a whole. Representation letters can also occur in an internal auditing context. For example, in reviews of compliance with the *Foreign Corrupt Practices Act, an internal auditor may request management confirmation of (i) the nonexistence of *conflicts of interest, (ii) the nonpayment of *bribes, and (iii) the operation of satisfactory *internal controls.

Auditor's dictionary. 2014.

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  • comfort letter — An alternative term for Representation letter …   Auditor's dictionary

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