"There are no violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency." The foregoing passage most likely is from a(an)
A) Client engagement letter.
B) Report on compliance with laws and regulations.
C) Management representation letter.
D) Attestation report on internal controls.

Question

Quizplus · Accepted Answer

This statement is a representation made by management in a management representation letter to the auditor during an audit engagement. The letter contains management's assertions about the financial statements and other specific matters related to the audit. Therefore, the correct answer is option C-Management representation letter. The other options are not suitable because they do not contain such representations.

"There Are No Violations or Possible Violations of Laws or Regulations