A Client's Refusal to Provide A Client Representation Letter to

question 57

Multiple Choice

A client's refusal to provide a client representation letter to the auditor will normally require the auditor to:

• A) issue a qualified opinion or a disclaimer of opinion.
• B) issue an unqualified opinion with an explanatory paragraph.
• C) issue a qualified or adverse opinion.
• D) issue a standard three-paragraph unqualified opinion.
• E) contact the audit committee for the relevant information.

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Definitions:

Incorrectly Recorded

Refers to entries or transactions that have been recorded inaccurately in the accounting records, requiring correction.

Cash Balance

The amount of money a company has in its cash accounts, including currency, coins, and balances in checking and savings accounts.

Allowance for Doubtful Accounts

An adjusted estimation for the amount of receivables that may not be collectible.

Accounts Receivable

Funds that are due to a company from its clients for products or services delivered but for which payment has not been received.