The Following Five Categories of Specific Matters That Might Be

question 90

Multiple Choice

The following five categories of specific matters that might be included in a management representation letter are consistent with ASA 580:

• A) financial reports; completeness of information; internal control; significant risks and uncertainties; and subsequent events.
• B) financial reports; accuracy of information; recognition, measurement, and disclosure; significant risks and uncertainties; and subsequent events.
• C) financial reports; completeness of information; recognition, measurement, and disclosure; going concern; and subsequent events.
• D) financial reports; completeness of information; recognition, measurement, and disclosure; significant risks and uncertainties; and subsequent events.

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Definitions:

Demand Function

A mathematical equation that describes the relationship between the quantity of a good consumers are willing to buy and the good’s price, holding other factors constant.

Supply Function

A mathematical expression that shows the relationship between the quantity of a good supplied by producers and the price of the good.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in market stability.