Management's refusal to sign the management representation letter is considered a scope limitation sufficient to preclude the issuance of an unqualified opinion.

Question

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According to auditing standards, the management representation letter is a required form of evidence to support the auditor's opinion. If management refuses to provide the letter, it would be considered a limitation on the scope of the audit, which could result in a qualified or adverse opinion rather than an unqualified opinion.

Management's Refusal to Sign the Management Representation Letter Is Considered