Management Representation Letters Are Required by Professional Auditing Standards, Whereas

question 9

True/False

Management representation letters are required by professional auditing standards, whereas management letters are optional.

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Definitions:

Unrealized Holding

Unrealized holding refers to the increase or decrease in the value of an investment that has not yet been sold by the holder and thus, any potential gain or loss is not yet recognized in the financial statements.

Fair Value

An estimate of the market value of an asset or liability, based on current prices in an open and competitive market.

Reporting Period

The reporting period is the span of time covered by financial reports, and it can be monthly, quarterly, or annually.