During a Review the Auditor Is Required to Obtain Written

question 46

Multiple Choice

During a review the auditor is required to obtain written representations from management.Which of the following is NOT one of the required elements of the representation?

• A)Management's responsibility for the fair presentation of the financial statements
• B)Management's belief that it has answered all inquiries fully and truthfully
• C)Management has made all adjustments identified during the review
• D)Management has disclosed information about subsequent events

---

Definitions:

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

A financial metric indicating the value of a series of cash flows over time in today's dollars.

Capital Budgeting

The process a business undertakes to evaluate potential major investments or expenditures to ensure financial viability and return on investment.

Tax Haven

A country or jurisdiction with very low or no taxes, often used by businesses and wealthy individuals to reduce their tax liability.