Management Rep Ltr

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#1
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309
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7-Jul-2014 6:39pm
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California
This is for a financial year-end audit.

Long time client goes thru annual financial audit every year. I provide tax return service and provide consolidation support, client has 2 operation under one company. I also provide general accounting support when needed. Client has its own accounting manager.

Recently, the controller of the company left. I picked up where she left off and took charge on the year-end audit, acting as a conduit between the auditor and various departments providing the information. Now the audit is over, the auditor sends over a rep letter with signature box for the CEO owner and me? Whatta?

the auditor says he needs me to sign now the accounting manager is not around. I politely replied no citing that i am not the management. He replied back saying he needs someone who work on the GL to sign. If i don't sign then they cannot issue final. This is complete bs.

I been doing audit for the last 20 years myself and i have never asked non-officer to sign rep letter unless they are the CFO or controller.

thoughts?
 

#2
Big E  
Account Deactivated
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Location:
New Jersey
You are correct.
 

#3
rkrcpa  
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22-Apr-2014 11:46am
Location:
Southeastern PA
Sounds like the auditor is under the impression that you have taken on the role of CFO. Do you have an engagement letter that covers the services you provide? That may clarify the circumstances and give the auditor something in the workpapers to point to.
 

#4
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6230
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22-Apr-2014 3:06pm
Location:
WA State
Have you provided the auditor any management representations?

If you've answered their questions, then you likely have and may have operated outside your intended scope as a result.

I quarterback a review for a client of mine. I am very careful to not answer any inquiries without their accounting staff or other owners on the line for this reason.

You may be in a bit of a pickle.
~Captcook
 

#5
eze  
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338
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8-May-2014 7:02pm
Location:
Grey Area, California
Auditor is being pedantic....as auditors will do. Yes it's a weird request. But they are trying to get a representation from someone that actually knows accounting because they know the CEO is just signing it with limited knowledge. If the financials blow up...the CEO will be yelling "I'm not an accountant! I didn't know!".

It is just a knowledge rep...if you are comfortable with the books, I wouldn't be too worried about signing it.
 


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