Which of the following statements ordinarily is included among the written client representations obtained by the auditor?
A) Compensating balances and other arrangements involving restrictions on cash balances have been disclosed.
B) Management acknowledges responsibility for illegal actions committed by employees.
C) Sufficient evidential matter has been made available to permit the issuance of an unqualified opinion.
D) Management acknowledges that there are no material weaknesses in the account balances.

Question

Quizplus · Accepted Answer

Compensating balances and other arrangements involving restrictions on cash balances are typically disclosed in the written client representations obtained by the auditor. This helps ensure that the auditor has a complete understanding of the client's financial position and can properly evaluate the presentation of cash and cash equivalents in the financial statements. Choices B, C, and D are not typical representations included in client representations. Management would not acknowledge responsibility for illegal actions committed by employees, it is not the responsibility of the auditor to confirm evidential matter made available, and management would not acknowledge the absence of material weaknesses before the conclusion of the audit.

Which of the Following Statements Ordinarily Is Included Among the Written