The Auditing Standards Suggest That Management Representations Are Acceptable Audit

question 33

Multiple Choice

The auditing standards suggest that management representations are acceptable audit evidence where other sufficient appropriate audit evidence:

• A) cannot reasonably be expected to exist.
• B) can reasonably be expected to exist.
• C) has not been furnished to the auditor.
• D) management representations are never appropriate audit evidence for financial statement assertions.

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Definitions:

Hole

An opening through something or an empty space in a solid body or surface.

Axle Breaks

A mechanical failure where the rod or spindle passing through the center of a wheel or group of wheels fractures or splits, compromising vehicle safety.

Damages

Compensation awarded through legal means to a person who has suffered loss or harm due to the wrongful act of another.

Legal Rights

Entitlements or permissions granted to individuals by law, which can be defended or enforced in a court of law.