Which of the following statements regarding the 'Management Representation Letter' is CORRECT?

Answer options:

It reduces the auditor's responsibility for detecting fraud.

It is a substitute for substantive audit procedures.

It should be dated as of the date of the auditor's report.

It is optional for nonissuer audits.

How to approach this question

Rep Letter Date = Audit Report Date. It covers the whole period up to the moment you sign off.

Full Answer

C.It should be dated as of the date of the auditor's report.✓ Correct

It should be dated as of the date of the auditor's report.

The management representation letter must be dated as of the date of the auditor's report. It confirms representations made throughout the audit and ensures they are valid up to the completion of fieldwork.

Common mistakes

Dating it at year-end (Dec 31) instead of report date.

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