When performing a review of a nonpublic company,the auditors must obtain in a representation letter acknowledgement of management for its responsibility for each of the following except:
A)Responsibility for identifying illegal acts committed by employees.
B)Responsibility for the financial statements conforming with generally accepted accounting principles.
C)Responsibility to prevent and detect fraud.
D)Knowledge of any actual or suspected fraud that is material.

Question

Quizplus · Accepted Answer

The responsibility for identifying illegal acts committed by employees falls under the responsibility of the company's legal counsel, not management. Therefore, the auditors would not need to obtain representation from management for this responsibility.

When Performing a Review of a Nonpublic Company,the Auditors Must