Who Should Prepare the Client’s Representation Letter and its Objectives

The Representation Letter
Author’s Name
Institutional Affiliation
Course Code and Name
Professor’s Name
Date

The Representation Letter
What are the objectives of the client’s representation letter?
First, the client’s representation letter reminds a company’s employees about their primary responsibility when it comes to preparing financial statements. Second, it offers evidence to show areas through which presentations depend on the management’s intentions. Third, the client’s representation letter provides auditors with written documentation that shows how the client replies. Fourth, it ensures that auditors receive all financial data, minutes of the directors’ meetings, and accounting records. Audit offices use the letter to remind them about the client’s requirements (Czerney et al., 2019). Lastly, the letter depicts the disclosure of items, such as party transactions to auditors, non-compliance with regulations, and loss contingencies. 
Who should prepare and sign the client’s representation letter?
Auditors prepare the client’s representation letter. They present the letter to the management. Specifically, the client’s representation letter attests that the financial statements provided to the auditors are accurate. When the client’s management team receives the letter, a senior official signs it (Knechel et al., 2020). For example, the chief financial officer (CFO) or the chief executive officer (CEO) can si...