Dating Audit Representation Letters
What are some common problems with the dating of audit representation letters?
- Representation letters sometimes have conflicting dates
- The letter may be mistakenly dated prior to audit file reviews
- The letter may be mistakenly dated prior to management’s review of the financial statements
Why do representation letters have conflicting dates?
Auditors often place a date (e.g., September 10, 2014) on the first page of the letter and then include a blank date line–under the signer’s name–on the last page. Consequently, the signer may add a date different from that on the first page (e.g., September 14, 2014).
How can I avoid the conflicting date issue?
Type the date on the first page of the representation letter, and do not provide a blank date line for signers.
What date should I use?
- Use a date concurrent with completion of the client’s review of the financial statements.
- Also the representation letter date should not precede the date of your final audit file reviews (which marks the completion of accumulating evidential matter to support the opinion). Check your audit file for final review dates prior to dating the representation letter; these reviews are normally performed by the engagement partner or quality control. Use a representation letter date concurrent with or after the date of the final review.