Which of the following expressions is least likely to be included in a management representation letter?
A)No events have occurred subsequent to the balance sheet date that require adjustment to or disclosure in the financial statements.
B)The company has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance.
C)Management acknowledges responsibility for illegal actions committed by its employees.
D)Management has made available all financial statements and related data.

Question

Quizplus · Accepted Answer

Management representation letters typically focus on confirming key information related to the financial statements and the internal controls of the organization. Acknowledging responsibility for illegal actions committed by employees is not something that would typically be included in such a letter, as it could potentially expose the organization to legal liability. A, B, and D are all more likely to be included in a management representation letter as they confirm important information related to the financial statements and the organization's compliance with relevant regulations and contractual obligations.

Which of the Following Expressions Is Least Likely to Be