The Auditing Standards Suggest That Management Representations Are Acceptable Audit

question 22

Multiple Choice

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

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

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Definitions:

Social Norms

Implicit rules that govern behavior within a community or group, guiding what is considered acceptable or typical.

Good Behaviors

Actions or conduct that are considered morally right, socially acceptable, or beneficial in a given context.

Imprinting

A rapid learning process that occurs within a critical or sensitive period and forms a lasting attachment or behavioral pattern.

Attachment

An emotional bond between individuals, especially evident in close personal relationships, including those between parents and their children.