Which of the following is not a purpose of the management representation letter?
A)It reminds management of its responsibility for the financial statements.
B)It confirms oral responses obtained by the auditor earlier in the audit and the continuing appropriateness of those responses.
C)It decreases the possibility of misunderstanding concerning the matters that are the subject of the representations.
D)It implies that the auditor is responsible for the design of the internal controls.

Question

Quizplus · Accepted Answer

The management representation letter does not imply that the auditor is responsible for the design of the internal controls. Rather, it confirms management's responsibility for the design and effectiveness of those controls. Choices A, B, and C are all legitimate purposes of the management representation letter.

Which of the Following Is Not a Purpose of the Management