CSRS 4200 Compilation Engagements: Management Representation Letter vs. Management Acknowledgement Letter

As we continue to work through implementation of CSRS 4200 Compilation Engagements, we are sharing our frequently asked questions (FAQs).  If you missed my first post, we addressed CSRS 4200 Compilation Engagements: Financial Statements vs. Financial Information.

Here we are with FAQ#2. “If we choose to document management acknowledgements formally in a letter should it be titled a Management Representation Letter or Management Acknowledgement Letter. The answer is you are probably okay with either, however here @Clearline CPA we are using the later. I suspect that the use of Representation Letter will be a ‘non-reportable’ deficiency upon technical review to ensure the terminology used in assurance engagements and compilation engagements differs.

The standard itself notes the specific areas where management acknowledgements are required to be documented, which may be obtained in writing or through documentation of discussions. As the issuance of a formal letter is not mandated to meet the documentation requirements, the name of any such letter is also not mandated. As an assurance practitioner I will not use these terms interchangeably.  The term representation is synonymous with assurance engagements (reviews and audits), and is required to be supported by a written statement provided by management to the practitioner or auditor.

Under CSRS 4200 Compilation Engagements, the Audit and Assurance Standards Board (AASB) changed the originally wording use in the exposure draft from ‘making inquiries of management’ to ‘obtain an acknowledgement from management’.  This provides me with options, that may or may not involve a written letter.  

Please share this blog with your colleagues as we continue to work through the implementation of the new standard. 

Visit our online store if you are looking for CSRS 4200 Compilation Engagement resources or contact us if we can be of assistance. 


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