Lehman, a listed company that manufactures wooden, has been an audit client of your firm for several years. As an audit senior, you are involved in the Lehman audit for the first time. The company operates a perpetual inventory counting system. While looking at the. Your audit manager has asked you to prepare a written representation letter for Lethman's directors to sign at the end of the audit. Outline the contents of such a letter.

prior year audit files, you note that numerous misstatements were identified by the audit team in respect of purchases cut$-$off, prompting adjustments to be made in last year's financial statements.

Answer rating: 100% (QA)

A written representation letter for Lehmans directors should include the following key contents 1 Acknowledgment of Responsibility The directors should acknowledge their responsibility for the prepara... View the full answer