Which of the following expressions is least likely to be included in a client's representation letter?
A) No events have occurred subsequent to the balance sheet date that require adjustment to, or disclosure in, the financial statements.
B) The company has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance.
C) Management acknowledges responsibility for illegal actions committed by employees.
D) Management has made available all financial statements, including notes.

Question

Quizplus · Accepted Answer

It is highly unlikely that management would acknowledge responsibility for illegal actions committed by employees in a representation letter. This would be contrary to their interests and could expose them to legal liability. The other options are more standard inclusions in a representation letter.

Which of the Following Expressions Is Least Likely to Be