Document background
The Management Representation Letter For Review Engagement is a crucial document required during financial statement review engagements in Indonesia. It is typically prepared at the conclusion of a review engagement when an independent accountant has performed procedures less extensive than an audit but more thorough than a compilation. The letter, mandated by Indonesian review standards (SPR 2400), serves as written confirmation from management about the accuracy and completeness of information provided during the review. This document is essential when a full audit is not required but stakeholders need some level of assurance about financial statements. It includes management's acknowledgment of their responsibilities, confirmations about the financial statements' preparation in accordance with Indonesian accounting standards (PSAK), and representations about various matters such as fraud, compliance, and subsequent events. The letter helps establish clear communication between management and the review firm while providing an additional layer of documentation for the review engagement.
