Which of the Following Statements Ordinarily Is Included Among the Written

question 73

Multiple Choice

Which of the following statements ordinarily is included among the written management representations obtained by the auditor?

• A)Compensating balances and other arrangements involving restrictions on cash balances have been disclosed.
• B)Management acknowledges responsibility for illegal actions committed by employees.
• C)Sufficient evidential matter has been made available to permit the issuance of an unqualified opinion.
• D)Management acknowledges that there are no material misstatements in the internal controls.

---

Definitions:

Value Chain

A sequence of activities that a company performs to design, produce, market, deliver, and support its products.

R&D

Research and Development, which refers to the activities companies undertake to innovate and introduce new products or services.

Product Design

The process of creating a new product to be sold by a business to its customers, focusing on specifications, functionality, and appearance.

Period Cost

Expenses that are not directly tied to production activity and are instead associated with a specific time period, like rent or utilities.