One of the purposes of a client representation letter is to
A)reduce the amount of audit procedures performed by the auditor.
B)document the responses from management to inquiries about various aspects of the audit.
C)serve as audit evidence for the accuracy of the contingent liabilities.
D)reduce the detection risk.

Question

Quizplus · Accepted Answer

A client representation letter is a written document from management to the auditor containing specific written assertions about the financial statements. This letter serves to document the responses from management to inquiries about various aspects of the audit, such as management's responsibility for the financial statements, the completeness of information provided to the auditor, and other matters related to the audit. The client representation letter is used by the auditor as audit evidence to support the accuracy of the financial statements. Therefore, option B is the correct choice.

One of the Purposes of a Client Representation Letter Is