A Management Representation Letter is a formal communication from a company's management to its auditors, providing written confirmations about various aspects of the financial statements. This letter typically includes assertions about the accuracy, completeness, and validity of the financial records and the application of accounting policies as per relevant standards.

For example, it may state that all liabilities have been disclosed, all related party transactions were conducted properly, and the financial statements comply with applicable accounting standards. An example sentence is: "The auditors requested a Management Representation Letter to document management's confirmation of the financial reports' completeness."

It serves to clarify and formalize management's acknowledgment of its responsibilities regarding financial reporting. The letter also assists auditors in completing the audit by corroborating verbal confirmations provided during the audit process.