As Part of an Audit, a CPA Often Requests a Management

question 44

Multiple Choice

As part of an audit, a CPA often requests a management representation letter from the entity. Which one of the following is not a valid purpose of such a letter?

• A)To provide audit evidence.
• B)To emphasize to the entity their responsibility for the fairness of the financial statements.
• C)To satisfy himself or herself that a certain account balance is fairly stated when certain customary auditing procedures are not performed.
• D)To provide possible protection to the CPA against a charge of knowledge in cases where fraud is subsequently discovered to have existed in the accounts.

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Definitions:

External Attribution

The process of attributing the cause of one's own or others' behavior to external factors, rather than to internal personality traits.

Causal Attribution

The process of determining the underlying cause or reason behind an event or behavior, attributing it to internal dispositions or external situations.

Deliberately Knocked

Intentionally causing something to be struck or come into forceful contact, often used metaphorically to describe the act of bringing attention to or criticizing something.

Repressed Memories

memories that have been unconsciously blocked due to being associated with a high level of stress or trauma.