Question

when should each of these letters be dated? Why it that important? (client letter of representation and a management letter?)

Answer 1

The management letter of representation is a letter issued by a client to the auditor in writing as an important audit evidences. The date of the document must not be later than the date of audit work completion. The purpose is to let the client's management declare in writing that the financial statements and other presentations to the auditor are appropriate and sufficient and without omission of material facts to the financial statements, to the best of the knowledge of the management.

Client representation letters are often prepared by the accountant or auditor, and addressed to them, however are signed by members of management whom the auditor accountant or auditor believes are responsible for and knowledgeable, directly or through others in the companies, in regard to the matters covered by the representations. Normally, the CFO and CEO must sign the representations. Since the accountant or auditor is concerned with events occurring through the date of the report that may require adjustments to or disclosure in the financial statements, the representations must be dated as of the date of the accountant or auditor report