Management Representation Letter For Review Engagement Template for South Africa

The Management Representation Letter For Review Engagement is a critical document required in South African review engagements, aligned with ISRE 2400 (Revised) and local regulatory frameworks. It is used when an entity undergoes a review engagement rather than a full audit, typically for smaller or medium-sized entities where a review provides sufficient assurance. The letter serves as written confirmation from management about various aspects of the financial statements, including their preparation, completeness of information provided, and disclosure of significant matters. It must comply with South African Companies Act requirements, SAICA guidelines, and international standards adopted by South Africa. The document includes specific representations about management's responsibilities, internal controls, fraud prevention, and compliance with laws and regulations, forming an essential part of the reviewer's engagement documentation.

1. Letter Header and Date: Addressing the letter to the independent reviewer including the firm name and address

2. Engagement Context: Reference to the review engagement of the financial statements, including the entity name, period covered, and purpose of the letter

3. Management Responsibilities: Acknowledgment of management's responsibility for financial statements, internal controls, and providing complete information

4. Financial Statements Preparation: Confirmation that financial statements are prepared in accordance with the applicable financial reporting framework (e.g., IFRS)

5. Information Provided: Confirmation that all relevant information, records, and access have been provided to the reviewer

6. Fraud and Error: Representations regarding knowledge of any fraud, suspected fraud, or errors affecting the entity

7. Compliance and Regulations: Confirmation of compliance with laws and regulations, including Companies Act requirements

8. Subsequent Events: Disclosure of events occurring after the reporting period that require adjustment or disclosure

9. Going Concern: Assessment of the entity's ability to continue as a going concern

10. Signatures and Dating: Space for authorized signatories (usually directors/management) and date of signing