Statement on auditing standards, 019

              June 1977
AICPA American Institute of
Certified Public Accountants
Client Representations
1. This Statement establishes a requirement that the independent
auditor obtain certain written representations from management as
a part of an examination made in accordance with generally accepted
auditing standards and provides guidance concerning the represen­tations
to be obtained.
Reliance on Management Representations
2. During an examination, management makes many representa­tions
to the auditor, both oral and written, in response to specific
inquiries or through the financial statements. Such representations
from management are part of the evidential matter the independent
auditor obtains, but they are not a substitute for the application of
those auditing procedures necessary to afford a reasonable basis for
his opinion on the financial statements. Written representations from
management ordinarily confirm oral representations given to the
auditor, indicate and document the continuing appropriateness of
such representations, and reduce the possibility of misunderstand­ing
concerning the matters that are the subject of the representations.
3. The auditor obtains written representations from management
relating to its knowledge or intent when he believes they are neces­sary
to complement his other auditing procedures. In many cases,
the auditor applies auditing procedures specifically designed to
Copyright © 1977 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036
Statement on
Auditing Standards
Issued by the Auditing Standards Executive Committee 19