A Client Representation Letter Is a Written Statement from a Non-Independent

question 54

Multiple Choice

A client representation letter is a written statement from a non-independent source and therefore

• A)cannot be regarded as reliable evidence on its own.
• B)can be regarded as reliable evidence only if the auditor finds strong internal controls.
• C)can be regarded as reliable evidence if the high-level corporate officials who sign it are trustworthy.
• D)needs to be confirmed by an outside,independent source such as a financial institution or law firm.

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Definitions:

Post-Conventional

A stage in moral development where individuals recognize universal ethical principles and prioritize them over laws and rules.

Idealistic Approach

An approach that emphasizes high standards and principles, often with a focus on what is perfect or desirable over what is realistic.

Formal Operational

The stage of cognitive development in Piaget's theory, typically beginning around age 12, where individuals gain the ability for abstract thinking.

Alternatives

Different options or choices available in a given situation or problem-solving context.