What it is
Financial statements on a cash, tax, regulatory or contractual basis need representations on the framework itself: why it is used, how it differs from GAAP, who the users are and any limits on distribution.
This letter covers the usual management representations and adds a section for basis-specific matters you choose from.
When to use it
- Audits of statements under a special purpose framework.
- Statements prepared for a lender, regulator or contract.
- When the standard letter does not address the basis of accounting.
What’s inside
- Framework, users and distribution representations
- Information provided and completeness representations
- Choice of tax, cash or regulatory basis representations
- Uncorrected misstatements and subsequent events
Standard cited
This template follows AU-C 580, 800. 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
Can I use the standard letter?
You can start there, but the framework representations need to be added.
What if the lender requires its own wording?
Add the lender’s required wording to the specific section and keep the other representations.
Related templates
- Special Purpose Framework Audit Report (Cash and Tax Basis)
- Management Representation Letter (AU-C 580)
- Cash Basis Financial Statements Template
- Income Tax Basis Financial Statements Template
Last updated 11/06/2026. All free templates.