6 Questions
What is the primary purpose of a management representation letter?
To attest to the accuracy and completeness of the financial statements provided to the auditors
Who is typically required to sign the management representation letter?
The CEO and the most senior accounting person (e.g., CFO)
When is the management representation letter typically signed?
After the audit fieldwork is completed, but before the financial statements are issued
What is the primary role of the management representation letter in the audit process?
To serve as part of the audit evidence used by the auditors
What is the consequence for management if it turns out that the audited financial statements are inaccurate or misleading?
The management representation letter shifts some blame to management
What is the typical practice regarding the issuance of an auditor's opinion without a signed management representation letter?
The auditor typically will not issue an opinion without a signed management representation letter
This quiz covers the purpose and significance of a management representation letter in external audits. Learn about the key individuals who are required to sign the letter and when it is typically signed in the audit process.
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