Management representation letters (AU-C 580): who signs, what’s required, dates, and refusals

The rules, one page each

1. Who signs the management representation letter, and which periods must it cover?Contrasting cases

   Under AU-C 580, obtain written representations dated as of the auditor’s report date from management with appropriate responsibility for the financial statements (ordinarily the CEO and CFO or equivalents). The representations must address all financial statements and periods referred to in the auditor’s report.

2. Management refuses to sign representation letter (AU-C 580)What next?

   Written representations under AU-C 580 are required audit evidence. If management refuses to provide them, the auditor treats it as a scope limitation, discusses the matter with management and those charged with governance, reassesses management’s integrity and the reliability of other evidence, and ordinarily disclaims an opinion or withdraws when permitted.

3. Do not delete the core representations: responsibility, access, and completenessContrasting cases

   AU-C 580 requires written representations that management is responsible for the preparation and fair presentation of the financial statements, responsible for internal control relevant to that preparation and presentation, has provided all relevant information and access, and that all transactions are recorded and reflected. Omission or alteration of these is a scope limitation.

4. Required topic-specific reps: litigation, related parties, fraud, and uncorrected misstatementsContrasting cases

   AU-C 580 requires written representations on matters such as litigation and claims, related-party relationships and transactions, known or suspected fraud, and uncorrected misstatements. Refusal to provide any required topic representation is a scope limitation that ordinarily results in a disclaimer of opinion or withdrawal.

5. Written representations are required audit evidence (not oral or third‑party substitutes)Side by side

   AU-C 580 makes written representations required audit evidence; they complement but do not replace other procedures, and cannot be replaced by oral statements, governance representations, or third‑party evidence.