Sign up to receive exclusive newsletters with the latest information affecting you and your organization. By clicking on the links below to various financial and budget documents for the City of San Antonio, you are acknowledging the following disclaimer. The information contained in each document is current only as of its date, and the City is under no obligation to update or supplement any such documents to reflect changes in fact or circumstances that may subsequently come to the City’s attention. Recent studies have indicated that older Chief Executive Officers tend to be more capable, ethical, and risk-averse as compared to their younger counterparts.

The OIG also performs an oversight role in the process to ensure compliance with the Chief Financial Officers Act of 1990. OIG oversight includes monitoring the progress of the audit, reviewing supporting workpapers, coordinating issuance of reports, following up on findings and management letter issues, and performing other functions deemed necessary under the circumstances. The audit was conducted in accordance with generally accepted government auditing standards. As it is a form letter, a letter of representation may be prepared at any point during a SOC 1 or SOC 2 examination.

What is the management representation letter?

Lynn also provides traditional audit, accounting, and tax services for nonprofits as well as advising nonprofit organizations on board governance, public charity status and public support test, internal control matters, and unrelated business income. When your CPA delivers your audited financial statements, pay close attention to the management letter — and compare it to the previous year’s letter. The written representations required by paragraph .50 of AT-C section 205 are identified in items a-i and the written representations required by paragraph .36 of AT-C section 320 in items j-k. During the course of our financial statement audit our auditors make note of internal control weaknesses and make suggestions for improvements. In addition to identifying the internal control deficiency, the auditor provides a recommendation to the organization to improve its internal control in order to eliminate those deficiencies.

Often times, management provides a written response to accompany the auditor’s comments. Auditors evaluate each internal control deficiency noted during the audit to determine whether the deficiency, or a combination of deficiencies, is severe enough to be considered a contents of a management letter material weakness or significant deficiency. In assessing the deficiency, auditors consider the magnitude of potential misstatements of your financial statements as well as the likelihood that internal controls would not prevent or detect and correct the misstatements.

The old guard: CEO age and corporate litigation

The write-up for each deficiency includes an observation , financial and qualitative impacts, and a recommended course of action. Lynn is a Principal with SVA Certified Public Accountants with focused expertise in nonprofit and real estate industries. In her role, she oversees and performs audits for owners of affordable multifamily housing units receiving Section 42 Low-Income Housing Tax Credits.

• Therefore, the letter is an important component of the compilation engagement and helps to assure the financial statements.
• It can be a way to ensure that all appropriate parties are aware of a deficiency and have the opportunity to address it.
• The auditor is required to gain an understanding of internal control as part of the planning process; however, that does not mean that internal control is required to be tested in all audits.
• As noted earlier, the simple answer is that the letter of representation is required by the American Institute of Certified Public Accountants, the governing body for attestation services.