A client's refusal to provide a management representation letter to the auditor will normally require the auditor to:
A) issue a qualified opinion or a disclaimer of opinion.
B) contact the audit committee for the relevant information.
C) issue an unqualified opinion with an 'emphasis of matter' paragraph.
D) issue an adverse opinion.

Question

Quizplus · Accepted Answer

A management representation letter is a key piece of evidence for auditors to confirm certain information and representations made during the audit. If a client refuses to provide this letter, it raises significant concerns about the reliability of the financial statements and the scope of the audit. This situation may lead the auditor to issue a qualified opinion if the matter is material but not pervasive, or a disclaimer of opinion if they are unable to obtain sufficient appropriate audit evidence on which to base the opinion, or if the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive.

A Client's Refusal to Provide a Management Representation Letter to the Auditor