Generally, a Written Representation _______

question 77

Multiple Choice

Generally, a written representation _______.

• A)is sufficient evidence to issue an unmodified audit report
• B)complements other audit procedures that were performed and generally does not provide sufficient appropriate audit evidence on its own
• C)replaces other audit procedures that were performed and generally does provide sufficient appropriate audit evidence on its own
• D)should be drafted by the client's legal counsel and signed with the auditor

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Definitions:

Stock Dividend

A disbursement by a company to its stockholders, consisting of extra shares instead of monetary funds.

Cash Dividend

A cash dividend refers to the distribution of profits by a corporation to its shareholders in the form of cash.

Stock Split

A corporate action in which a company divides its existing shares into multiple ones to boost the liquidity of the shares, though the company's market capitalization remains unchanged.

Average Investor

A term referring to a hypothetical investor who represents the median market participant, with typical financial goals and risk tolerance.