At the completion of the audit,management is asked to make a written statement that it is not aware of any undisclosed contingent liabilities.This statement would appear in the
A)management letter.
B)representation letter.
C)engagement letter.
D)letters testamentary.

Question

Quizplus · Accepted Answer

The representation letter is a letter from management to the auditors that outlines management's responsibility for the financial statements and affirms that all information provided to the auditors is accurate and complete. As part of this letter, management is asked to confirm that it is not aware of any undisclosed contingent liabilities. Therefore, the statement would appear in the representation letter. The management letter is a separate communication from the auditors to management that identifies any control weaknesses or areas for improvement. Engagement letters are used at the beginning of an audit to outline the scope and terms of the engagement, and letters testamentary are legal documents used in the probate process.

At the Completion of the Audit,management Is Asked to Make