Instructions to Audit Team:
Fill in all yellow-highlighted parts of this letter, including determining who the
appropriate signatories should be, based on the specifics of your performance
Management Representation Letter
audit. Further modifications to the letter may be appropriate.
to be presented on Auditee’s letterhead
Send the management representation letter should be sent to the agency along
with the audit report draft. Remove this text box before sending.
(Date)
(Name of Deputy)
Deputy State Auditor
Office of the State Auditor
1525 Sherman St., 7th Floor
Denver, Colorado 80203
The agency should return a signed copy of the management representation
letter (on its letterhead) along with its written responses.
We are providing this letter in connection with your performance audit of the
(Department/Agency/Program). The overall purpose of the performance audit was to (describe
main purpose/objectives/scope of audit).
Certain representations in this letter refer to matters that are material to your performance audit.
Items are considered material, regardless of size, if they involve an omission or misstatement of
information that, in light of surrounding circumstances, makes it probable that the judgment of a
reasonable person relying on the information would be changed or influenced by the omission or
misstatement.
As of (date of responses), we confirm, to the best of our knowledge and belief relative to the
scope of the audit described above the following representations made to you during your
performance audit:
1. We are responsible for establishing and maintaining proper internal controls at the
(Department/Agency/Program), including systems of administrative and internal
accounting controls over our operating, programmatic, and financial activities. Effective
internal controls include activities to identify all laws, rules, and regulations which
govern our operations and to ensure compliance with them.
2. We have made available to you all requested records and related data from the
(Department/Agency/Program) that are relevant to the scope of your performance audit
described earlier in this letter, including complete and accurate programmatic and
financial information, such as (add general description of records and data). If not, we
have reported any exceptions to you during the course of your performance audit.
3. We have complied with applicable contract requirements, including amendments, as well
as state and federal laws, rules, and regulations with respect to the
(Department/Agency/Program) and the scope of your performance audit as described
earlier in this letter. If not, we have reported any exceptions to you during the course of
your performance audit.
4. We have expended (Department/Agency/Program) monies with respect to the scope of
your performance audit as described earlier in this letter in accordance with any
limitations, restrictions, conditions, or mandatory directions imposed by law or contract
upon such monies. If not, we have reported any exceptions to you during the course of
your performance audit.
5. We acknowledge our responsibility for the design and implementation of programs and
controls at the (Department/Agency/Program) to detect and prevent fraud and abuse. We
understand that the term “fraud” refers to a type of illegal act involving obtaining
something of value through willful misrepresentation, and that the term “abuse” refers to
behavior that is deficient or improper when compared with behavior that a prudent person
would consider reasonable and necessary business practice given the facts and
circumstances of the situation.
6. We have no knowledge of any allegations of fraud or suspected fraud affecting the
(Department/Agency/Program) with respect to the scope of your performance audit as
described earlier in this letter. If so, we have reported such allegations or suspicions to
you during the course of your performance audit.
7. No event has occurred or matters discovered since (end of fieldwork) that we believe
would have an effect on your performance audit. If so, we have reported such to you
during the course of your performance audit.
8. We have responded fully to all inquiries made to us by you during your performance
audit.
Sincerely,
(Name of Executive Director), Executive Director
(Department)
(Name), (Title)
(Department/Division)
(Name), (Title)
(Department/Division)