Explain Briefly (A)written Representations,(b)internal Control Communications,and (C)management Letters

question 7

Essay

Explain briefly (a)written representations,(b)internal control communications,and (c)management letters.In your answer,include the general content of the communication,the parties involved with the communication,the required form of the communication,and whether the communication is required under generally accepted auditing standards.

---

Definitions:

Price Leadership

An informal method that firms in an oligopoly may employ to set the price of their product: One firm (the leader) is the first to announce a change in price, and the other firms (the followers) soon announce identical or similar changes.

Kinked Demand

A market scenario where a firm's demand curve is more elastic for price increases than for price decreases due to competitive reactions.

Monopolistic Competition

A market structure in which many firms sell products that are similar but not identical, allowing for some degree of market power.

Oligopoly

A market structure characterized by a small number of firms that have significant control over market prices and competition levels.