The literal expression of management statement is defined as management statement (1): management statement refers to the financial statement provided by the management of the audited entity to the certified public accountant. (ii) Function: The management statement has the following two basic functions: First, it clarifies the management's responsibility for the financial statement. The second is to provide audit evidence. (iii) Management statements cannot replace other audit evidence. Certified public accountants should not substitute management statements for other audit evidence that can be reasonably expected. (IV) Handling when the management statement contradicts other audit evidence. If the management statement contradicts other audit evidence, the certified public accountant shall ask the management. If the management can't give a reasonable explanation, or the explanation is insufficient, it means that there may be problems in the integrity of the management. It's time to reconsider the reliability of the management's statement. Two. Management statement Management statement includes written statement and oral statement. As audit evidence, written statements are usually more reliable than oral statements. General requirements: the management should send the statement to the certified public accountant himself. The statement should include the required information, be properly dated and signed. Main contents: (1) About financial statements; (2) About the integrity of information; (3) About confirmation, measurement and presentation. Date of signing: The date indicated in the management statement is usually the same as the date of the audit report. Signatory: The management statement is usually signed by the person in charge of the audited entity and its finance.