Which of the Following Statements Is Correct

question 125

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 it is a written statement from a nonindependent source.
• 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:

Palpation

A medical method that involves using the hands to examine the body, particularly to assess the size, consistency, and location of certain body parts.

Breath Sound

The sounds made by air moving through the respiratory system, which can indicate health or disease states when assessed with a stethoscope.

Vesicular

Pertaining to or characterized by small, fluid-filled blisters on the skin.

Lungs

Pair of spongy, air-filled organs located on either side of the chest (thorax), responsible for removing carbon dioxide and bringing oxygen into the blood.