Which one of the following is not a purpose of the management representation letter?
A)It clearly documents the audit procedures that were performed by the auditors.
B)It further acknowledges management's responsibility for the financial statements.
C)It confirms oral responses obtained by the auditor earlier in the audit and the continuing appropriateness of those responses.
D)It reduces the possibility of misunderstanding concerning the matters that are the subject of the representations.

Question

Quizplus · Accepted Answer

The management representation letter is not intended to document the audit procedures performed by the auditors. Its main purposes are to acknowledge management's responsibility for the financial statements, confirm oral responses obtained by the auditor earlier in the audit, confirm the continuing appropriateness of those responses, and reduce the possibility of misunderstanding concerning the matters that are the subject of the representations.

Which One of the Following Is Not a Purpose of the Management