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) letter of inquiry.
C) letters testamentary.
D) management letter of representation.

Question

Quizplus · Accepted Answer

The management letter of representation is a statement made by management to the auditors about its belief that the financial statements are complete and accurate. It includes a statement about any undisclosed contingent liabilities that may affect the financial statements. Therefore, the statement about undisclosed contingent liabilities would appear in the management letter of representation.

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