Which of the Following Expressions Most Likely Would Be Included

question 412

Multiple Choice

Which of the following expressions most likely would be included in a management representation letter?

• A) No events have occurred subsequent to the balance sheet date that require adjustment to, or disclosure in, the financial statements.
• B) There are no significant deficiencies in internal control identified during the prior-year's audit of which those charged with governance are unaware.
• C) We do not intend to provide any information that may be construed to constitute a waiver of the attorney-client privilege.
• D) Certain computer files and other required audit evidence may exist only for a short period of time and only in computer-readable form.

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Definitions:

Beginning Equity

The value of an owner's interest in a company at the start of an accounting period, before any transactions affecting equity occur.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Dividends

Disbursements from a corporation to individuals holding its stock, serving as their share of the earnings.

Ending Equity

The value of an owner's interest in a property or a business at the end of an accounting period after all debts have been subtracted.