What it is
An audit of consolidated statements needs representations about more than one entity: which entities are in the scope, how control was assessed, what was eliminated and what the components did. This is a complete letter, signed by the parent’s management, with the standard representations written for a group.
It covers the consolidated statements, subsequent events and uncorrected misstatements across components, the consolidation scope and variable interest entities, eliminations, noncontrolling interests, related parties across entities, information and access at components, fraud and compliance.
When to use it
- On any audit of consolidated financial statements.
- When the group changed during the year through acquisition, disposal or deconsolidation.
- When component auditors, foreign subsidiaries or variable interest entities are in the scope.
What’s inside
- Responsibility, estimates, subsequent events and misstatement representations for the whole group
- Scope representation tied to a schedule of entities, ownership percentages and reporting dates
- Elimination, conforming policy, translation and cash restriction representations
- Noncontrolling interest and related party representations across entities
- Information, access, fraud and compliance representations covering every component, and the signature block
Standard cited
This template follows AU-C 580 / ASC 810. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 580 explained.
Questions
Does this replace the standard representation letter?
Yes, for a consolidated audit. It contains the standard representations written for a group, so one letter covers the parent and every component. Add the going concern addendum when it applies.
What date should the letter carry?
The date of the auditor’s report, covering all periods the report refers to.
Who signs?
The members of management the auditor holds responsible for the statements and who know the matters covered, usually the chief executive and the chief financial officer of the parent.
Can the letter replace audit evidence on consolidation scope?
No. Written representations support other evidence and do not replace it.
Related templates
- Management Representation Letter (AU-C 580)
- Consolidation and Elimination Workbook (ASC 810)
- Consolidation Checklist (ASC 810)
- Intercompany Reconciliation and Elimination Worksheet
Last updated 11/05/2026. All free templates.