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:

Federal Budget Deficit

The shortfall when a government's expenditures exceed its revenues within a specified fiscal period.

National Debt

The aggregate financial borrowing of a country's government, acquired through multiple methods.

Public Debt

The total amount of money that a government owes to creditors, often as a result of deficit spending.

Federal Government Deficits

Occurs when a government's expenditures exceed its revenues during a specific fiscal period, leading to borrowing or debt accumulation.