Glossary›Assurance, audit evidence and working papers›Management representation letter
Glossary term
Cluster A · A19
Tier 1 · differentiator
Management representation letter
Definition
A management representation letter is a formal letter signed by management, usually including the CFO, at the end of an assurance engagement. It confirms in writing that the information given to the assurer was complete, that judgements are reasonable, and that no relevant matters were withheld. It is evidence, not a formality, and the assurer cannot conclude without it.
On this page
In practice
Finance leaders know this document from the financial statement audit. The climate version is unfamiliar in content, and it is the point at which the personal weight of the regime becomes concrete, because the representations cover matters the signatory has often not personally verified.
Typical representations include: that the emissions inventory is complete and includes all entities and facilities within the stated boundary; that all relevant source data was made available; that the significant judgements and estimates are reasonable; that all known instances of non-compliance and all known climate-related risks have been disclosed; and that subsequent events affecting the disclosures have been communicated.
The completeness representation is the one to read carefully. Signing that the inventory covers all facilities requires knowing the population of facilities, which is exactly what a general ledger and lease register reconciliation establishes.
What the assurer does with it
The assurer drafts it, tailors it to matters that arose during the engagement, and requires it dated on or near the date of the conclusion. It is corroborating evidence, not a substitute for testing; a representation cannot fix a gap the assurer identified. If management refuses to sign a representation the assurer considers necessary, that is itself a scope limitation and it flows straight to a modified conclusion. Expect specific representations covering anything the assurer could not test independently.
Commonly confused with
The directors’ declaration under the Corporations Act, which is a public document lodged with the report. The representation letter is private, addressed to the assurer, and signed by management rather than by the board.
Sources
1
ASSA 5000 General Requirements for Sustainability Assurance Engagements
AUASB
2
Review status
Review required
Last reviewed
15 September 2026
Editorial pass, unsigned
Reviewer required
Registered company auditor
Next scheduled review
1 July 2027
Part of
Cluster A, Assurance, audit evidence and working papers
47 terms on what an assurance provider tests, what they accept as evidence, and what a preparer has to be able to produce.
Related terms
Who the letter is addressed to and why they need it
The procedure the letter formalises and corroborates
The board-level obligations sitting alongside this letter
Related questions
What is a management representation letter and what will we be signing?
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A letter management signs near the end of the assurance engagement, confirming matters the practitioner cannot verify independently. You confirm that the disclosures are complete, that you have provided all relevant information, that your judgements and estimates are reasonable, and that you have disclosed any known errors or later events.
What does the board have to sign?
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The directors’ declaration in the sustainability report. For financial years commencing between 1 January 2025 and 31 December 2027, directors declare they have taken reasonable steps to ensure the report complies with the Corporations Act. From financial years commencing 1 January 2028, they declare their opinion that it does comply.
Other terms in this cluster
Management representation letter