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The APESB has sought to clarify the ethical obligations of professional accountants who sign management representation statements.
Exposure draft 05/15 entitled Management Representations has been released by the body, directed primarily towards members of professional accounting bodies who are chief finance officers or in senior finance roles.
APESB chair Nicola Roxon encouraged accountants and advisers to read take note of the draft guidance, and be fully aware of their responsibilities in preparing, reviewing or approving management representations.
“It’s vital for professionals in the relevant role to ensure these management representations are prepared or presented fairly and honestly, in accordance with the code,” Ms Roxon said.
The guidance note itself covers both internal and external management representations.
External management representations include annual and half-yearly financial statements and compilation statements, while internal management representations include financial reporting certifications and declarations to the board or audit committee of a local or foreign jurisdiction.
“The context of the representation is also key to ensure necessary information isn’t omitted or that it is not misleading in any way,” Ms Roxon added.
APESB added that the exposure draft is open for comment until 29 February 2016, with the body seeking feedback from all interested parties.