After the audit, the audit committee, executive director, and senior financial staff are responsible for reviewing the draft audit report, asking questions about the auditors' findings, and evaluating any recommendations before they are presented to the board in the final report. This letter, sometimes referred to simply as the "management letter" serves to identify areas of operations or procedures that the nonprofit may want to improve or redesign. Since auditors work with a variety of organizations, they often are aware of "best practices" or -- at the very least -- "better practices" that they can point out in the letter to management. The audit committee or staff often asks to review a draft of the management letter just to make sure that the letter is accurate before the final version goes to the board of directors, since the board is likely to be concerned about any deficiencies or even less serious concerns that the auditors identify in the letter. The accounting standards require the auditors to report to the board any "material weaknesses" and significant deficiencies. SAS Nos.
Management Representation Letter
The date of the management representation letter should coincide with the date o-高顿题库
11+ Management Representation Letter Templates in DOC | PDF
Obtaining a representation letter helps to ensure your client understands the services that you have provided, the limitations on the work you have completed, and that they are ultimately responsible for their financial statements. Listed here are some basic representations you could consider using in a compilation management representation letter:. Management is not aware of any matter that has occurred or is pending that would cause the financial statements to be false or misleading. Consider tailoring specific representations for the engagement to mitigate identified risks. Two examples of representation points that might apply to most compilation engagements are:.
The Letter of Representations is a letter written from the Association to its accountant representing that the financial statements for the time period covered by the engagement are the responsibility of "management". In a community association, management include "those charged with governance" the board of directors and the professional manager. Management confirms to the best of their knowledge various facts, including the following:.