Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A)A letter of representation is documentation of management's acceptance of responsibility for the financial statements and is deemed to be reliable evidence.
• B)A letter of representation is not deemed to be reliable evidence because of the potential incompetence of management.
• C)A letter of representation is not deemed to be reliable evidence because of the lack of independence of the preparers.
• D)A letter of representation is documentation of the CPA's acceptance of responsibility for the audit of the financial statement and is deemed to be reliable.

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Definitions:

Null Hypothesis

A statement positing that there is no significant effect or difference for a specific population parameter.

Positive Relationship

Relationship in which increases in scores for one variable are associated with increases in scores of another variable.

Population Means

The average value of a particular variable for the entire population, which provides a parameter that can be estimated through the use of sample means.

Pearson Correlation

A measure of the linear correlation between two variables X and Y, giving a value between +1 and -1 inclusive.