Management Representation Letter For Review Engagement Template for the United Arab Emirates

A Management Representation Letter For Review Engagement is a formal document that your company's management must provide to external review practitioners conducting limited assurance engagements on your financial statements. This letter serves as written confirmation of management's acknowledgment of responsibilities and provides specific representations about your company's financial position and compliance with applicable laws.

When do you need this document?

You need this representation letter whenever your company undergoes a review engagement of its financial statements. This typically occurs when you require limited assurance for financing arrangements, regulatory compliance, or stakeholder requirements where a full audit is not necessary. Review engagements are commonly requested by banks before loan approvals, by investors during due diligence processes, or by regulatory bodies for compliance purposes. The letter must be signed before the reviewing practitioner can complete their engagement and issue their review report.

Key legal considerations

The representation letter creates legal obligations for your management team and establishes accountability for the information provided during the review engagement. Key representations typically include confirmations about the completeness and accuracy of financial records, acknowledgment of management's responsibility for internal controls, and declarations regarding fraud prevention and detection systems. You must also provide representations about related party transactions, subsequent events after the balance sheet date, and compliance with laws and regulations. False representations can result in legal consequences and may invalidate the review engagement. The letter should address specific areas such as revenue recognition, asset valuations, contingent liabilities, and going concern assumptions.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 32 of 2021 (Commercial Companies Law), company management bears primary responsibility for maintaining accurate financial records and ensuring compliance with financial reporting requirements. Your representation letter must comply with ISRE 2400 (Revised) standards, which are mandatory for review engagements in the UAE. The UAE Federal Law No. 12 of 2014 (Auditing Law) requires that reviewing practitioners obtain written representations from management before completing their engagement. Your letter must include specific representations regarding compliance with UAE Federal Decree-Law No. 19 of 2020 (Anti-Money Laundering Law) and confirm that your financial statements are prepared in accordance with IFRS Standards as adopted in the UAE. The document must be signed by your Chief Executive Officer and Chief Financial Officer, with board approval where required by your company's articles of association.