If the auditor is performing an audit of a nonpublic company and the client refuses to provide a management representation letter, the auditor may:
A) issue a financial statement audit report.
B) issue an integrated audit report.
C) issue a financial statement audit report with a scope limitation.
D) depending on the circumstances, the auditor may choose any of the alternatives.

Question

Quizplus · Accepted Answer

If the client refuses to provide a management representation letter, the auditor cannot obtain sufficient appropriate audit evidence regarding management's assertions. This constitutes a scope limitation, and the auditor should issue a financial statement audit report with a scope limitation. This report identifies the scope limitation and describes its effects on the audit. The report should indicate that the financial statements cannot be audited in accordance with auditing standards and should indicate the reasons for the scope limitation.

If the Auditor Is Performing an Audit of a Nonpublic