Represent by Management (AAS 11)

As per AAS 11, auditor can use representation by management for audit evidence during the audit work. But it is clear, representation by management is not substitute of other audit evidence.


For example, we all know management has the data base of quantity, quality standard and value of inventory. Auditor can use all these data but it is not substitute of original verification.

Clear Definition of Representation by Management 

AAS 11 does not clearly define the representation by management but as the student of accounting, you should know the clear meaning of representation by management.

Representation by management is written letter from management to auditor. In the letter, management will declare that the information which is given in financial statements and other financial reports are sufficient and appropriate as per the knowledge of management. There is no hidden financial information or omission of material facts in it. Management should write such declaration after verify the facts relating to contingent liabilities and off balance sheet items.

Except above letter, auditor should get written information of board of director's meeting minutes and management's view of any financial matter.

Following is the sample of letter of representation by management

Related : AAS 10