A letter of representation written by the client's management to the auditor formalises resolutions of disagreements about different matters throughout the audit.

Question

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A letter of representation (or management representation letter) is written by the client's management to the auditor at the end of an audit process to confirm certain information and representations explicitly or implicitly given to the auditor. It does not formalize resolutions of disagreements about different matters; rather, it is a part of the audit evidence the auditor gathers. Disagreements are resolved through discussions and adjustments in the audit findings, not through the letter of representation.

A Letter of Representation Written by the Client's Management to the Auditor