Field notes · 8 January 2026
What belongs in a management representation letter
Plain-language notes on the statements directors sign at the end of an audit engagement.
Before we issue an auditor’s report, those charged with governance confirm in writing that the financial statements are complete and that they have disclosed fraud risks, subsequent events, and related-party matters.
It is not a formality
Signing means you believe the representations are true to the best of your knowledge after making appropriate enquiries. If something material comes to light after signing but before issuance, tell us immediately.
Typical contents
Responsibility for the statements, confirmation that all records were available, disclosure of litigation or claims, and affirmation that subsequent events have been considered through the report date.
Timing
We circulate a draft near the end of fieldwork so legal or group counsel can review wording. Leaving the letter to the afternoon of the signing ceremony is how small companies create avoidable delay.