The management representation as an audit evidence:
During the course of an audit, management makes many representations to the auditor, either unsolicited or in response to some specific enquiries.
The auditor also should obtain representation from management, where considered appropriate and necessary.
The management representation is taken to corroborate audit evidence, but representations management cannot be a substitute for other audit evidences that the auditor could reasonably expect to be reasonably available.
In certain cases, where knowledge of facts is confined to management, a representation management may be the only audit evidence, which can reasonably be expected to be available.
If a management representation is contradicted an available other audit evidence, the auditor should examine the circumstances and, when necessary, reconsider the reliability of other representations made management.