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:

Congruence

The degree to which a person's self-concept and their experiences are aligned, often used in psychology to indicate authenticity and psychological health.

Unconditional Positive Regard

A concept in psychology where an individual is accepted and supported completely, without judgement or conditions.

Fully-functioning

Describes a person who is living at their fullest potential, emotionally, psychologically, and in relation to others.

Roger's Six Characteristics

Six qualities Carl Rogers identified as essential for a therapist to effectively facilitate client-centered therapy, including empathy and genuineness.