Which of the Following Is not Correct Relating to Representation

question 4

Multiple Choice

Which of the following is not correct relating to representation letters?

• A)They are ordinarily dated as of the date of the audit report.
• B)They are signed by members of top management.
• C)They must be obtained for audits.
• D)They often serve as a substitute for the application of other procedures.

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Definitions:

Hedged Item

An asset, liability, or planned transaction exposed to price risks that are offset by using a hedging instrument.

Anticipated Transaction

A future financial operation or deal that is expected to occur.

Existing Asset

Assets that are currently in possession or use by a company, as opposed to newly acquired or disposed assets.

Firm Commitment

An agreement between a buyer and a seller wherein the seller is obligated to supply an agreed-upon amount of goods or services at a specified price.