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) can be regarded as sufficient evidence if the high-level corporate officials who sign it are trustworthy.
C) needs to be confirmed by an outside independent source such as a financial institution or law firm.
D) cannot be regarded as sufficient evidence.

Question

Quizplus · Accepted Answer

A management representation letter is a written statement from a non-independent source, therefore it cannot be considered as sufficient evidence on its own. It is only used as supplementary evidence to other audit procedures. The auditor should obtain sufficient appropriate evidence from other independent sources to support their audit opinion.

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