A management representation letter is a written statement from a non- independent source and therefore:
A) can be regarded as sufficient evidence only if the auditor finds a strong internal control system.
B) needs to be confirmed by an outside independent source such as a financial institution or law firm.
C) can be regarded as sufficient evidence if the high- level corporate officials who sign it are trustworthy.
D) cannot be regarded as sufficient evidence.

Question

Quizplus · Accepted Answer

A management representation letter is not considered sufficient evidence on its own as it comes from a non-independent source, i.e., the management of the entity being audited. The auditor needs to gather additional evidence to support their opinion.

A Management Representation Letter Is a Written Statement from a Non-