The purpose of the management representation letter is to
A)clarify all the information provided to the auditor during the audit reducing the possibility of misunderstanding between management and the auditor
B)obtain additional information to support audit conclusions
C)clarify assumptions provided to the auditor during the audit
D)obtain audit evidence that was not available during the normal course of fieldwork

Question

Quizplus · Accepted Answer

The management representation letter is a written statement from management to the auditor which helps to reduce the possibility of misunderstanding between management and the auditor. It confirms the responsibilities of management for the financial statements, the completeness of information provided to the auditor, and the fairness of the financial statements. It is not intended to obtain additional information or audit evidence that was not available during the normal course of fieldwork. It may clarify assumptions provided to the auditor, but this is not its primary purpose.

The Purpose of the Management Representation Letter Is to