ACCA Audit and Assurance (F8) Practice Exam 2025 – The Complete All-in-One Guide to Achieve Exam Success

A representation letter is a formal document provided by management to the auditors during the audit process. It serves as a means for management to confirm certain representations made during the course of the audit. When discussing what a representation letter typically needs to include, the approval by those with specific knowledge is essential because it affirms that the information included in the financial statements and other documentation is accurate and has the backing of individuals in key management positions who possess the understanding of the financial reporting process.

This aspect of the representation letter helps ensure auditors that the management has taken responsibility for the completeness and accuracy of the information provided. It indicates that key personnel have reviewed and agreed to the assertions made in the representations, highlighting accountability and the seriousness with which management regards the financial reporting process.

Including the approval by knowledgeable individuals in the representation letter strengthens the reliability of the information offered to auditors, thus supporting them in forming their opinion on the financial statements.