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

question 53

Multiple Choice

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

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

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Definitions:

Competitive Edge

An advantage that allows an organization to outperform its rivals.

Talented Employees

Individuals who possess a high level of skill, creativity, or intelligence, making them particularly valuable to their employers.

Old Age

The latter part of life, typically regarded as the years after retirement, when a person is considered to be advanced in years or elderly.

Survivors

Refers to the employees who remain in an organization following layoffs or downsizing, often facing increased workloads and psychological stress.