"Letter of Representation Template"

What Is a Letter of Representation?

A Letter of Representation is a letter that accompanies a package of documents as the letter explaining the content of the package. The subject matter of the letter can be different - the accountant can write about money transfers, taxes, reserves, or insurances, and it must always be signed by a superior. The letter is a requirement of the American Institute of Certified Public Accountants (CPA).

Alternate Names:

  • Management Representation Letter;
  • Audit Letter of Representation (LOR).

A printable Letter of Representation template can be downloaded through the link below.

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Different Types of Representation Letters

There are two major kinds of representation letters - "Audit Representation Letters" and "Management Representation Letters:"

  • An Audit Letter of Representation is a letter usually composed by a resource person (external auditor) on behalf of the company's management after they have provided all the necessary relevant information and access to all the required documents. The subject matter of this kind of letter would be financial control, statements, and reports. The letter is usually signed by the senior management of the company and by signing the superior agrees that the specified information is correct. If there is some uncertainty in a company's financial statements then an external auditor should conduct further investigations;
  • A Management Letter of Representation is a request letter written to a management group of the company. The request can be about any material transactions, promotion letters, holidays, etc. As the financial control is carried out by the management group they should take all the responsibility for the company amounts and fraud prevention.

There is also one subtype of this letter known as the "Legal Letter of Representation" or an "Attorney Representation Letter." This letter is usually sent by a lawyer to a person that is charged with causing an injury. The lawyer may send this letter after investigating medical records.

How to Write a Letter of Representation?

There is no general Letter of Representation format but the common rules are that the Representation Letter should be clear, polite, and straightforward. This letter should include the following:

  1. The date (cannot be earlier than the date the audit finishes) and the contact information of both parties: their names (or the names of their company), addresses (including city and country), phone numbers, and emails.
  2. A salutation. The letter should be formal and polite, so use "Dear …" if you know the name of the recipient or just "Sir/Madam."
  3. The subject matter of the letter. This part consists of three paragraphs - an introduction, the matter in detail, and a conclusion. In the introduction, the sender presents themself and describes the reason for writing the letter. Then comes the second paragraph where the sender presents the matter in detail. Do not use ambiguous language in this part and write to the point. In the third paragraph or in the conclusion the sender might suggest any action or make a request for something. You may also express your hope for an early response (This is not suitable for an audit letter of representation).
  4. Annex. In this part, the sender may enumerate all of the attached documents (better with clarifications).
  5. Closing. This part should be written in accordance with the salutation, so you can use "Yours sincerely" or you can write a more formal "Thanks & Regards."
  6. Sender's signature. The signature is mandatory as it is the confirmation of your statement.

Check out these related letter templates:

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Letter of Representation
From: ___________________________
To:______________________________
Representative’s Name
Recipient's Name
_________________________________
_________________________________
_________________________________
_________________________________
Representative’s Address
Recipient's Address
_________________________________
_________________________________
City, State, ZIP Code
City, State, ZIP Code
_________________________________
Date
To Whom It May Concern,
Please be advised that this office represents _______________________ in the following
instance:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Details Related to the Case
I will forward to you details and reports for my client as soon as they become available.
We will keep you posted on significant developments.
If you have any questions or concerns in reference to the above-captioned claim, please
feel free to contact me.
Sincerely,
_______________________________
Representative’s Name
_______________________________
Representative’s Signature
©
TEMPLATEROLLER.COM
Letter of Representation
From: ___________________________
To:______________________________
Representative’s Name
Recipient's Name
_________________________________
_________________________________
_________________________________
_________________________________
Representative’s Address
Recipient's Address
_________________________________
_________________________________
City, State, ZIP Code
City, State, ZIP Code
_________________________________
Date
To Whom It May Concern,
Please be advised that this office represents _______________________ in the following
instance:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Details Related to the Case
I will forward to you details and reports for my client as soon as they become available.
We will keep you posted on significant developments.
If you have any questions or concerns in reference to the above-captioned claim, please
feel free to contact me.
Sincerely,
_______________________________
Representative’s Name
_______________________________
Representative’s Signature
©
TEMPLATEROLLER.COM