ICAI Releases FAQs on Management Representation Letter

The Institute of Chartered Accountants of India (ICAI) has released a new publication named “Frequently Asked Questions (FAQs) on Management Representation Letter“. This publication was brought up by the Auditing and Assurance Standards Board (AASB) and includes frequently asked questions (FAQs) on the management representation letter and answers to these FAQs. These FAQs will help the auditors with Management Representation Letters (MRLs) during audits and comply with the requirements of SA 580.

A management Representation letter is a formal document given by a company’s management to the auditors. This document gives the auditor a confirmation by the management of the entity that it is responsible for preparing the financial statements and that all required information has been shared with the auditor. This helps auditors to trust the information given during the audit process. Therefore, management representations play an important role in the audit process of a company.