A Major Objective of Written Representations Is to

question 122

Multiple Choice

A major objective of written representations is to

• A) Shift responsibility for financial statements from the management to auditors.
• B) Provide a substitute source of audit evidence for substantive procedures that auditors would otherwise perform.
• C) Provide management an opportunity to make assertions about the quantity and valuation of the physical inventory.
• D) Impress on management its ultimate responsibility for the financial statements and disclosures.

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Definitions:

Informal Economy

The part of an economy that is neither taxed nor monitored by any form of government, often characterized by cash transactions and unregulated employment.

Goods And Services

The products and activities offered by businesses to satisfy the needs and wants of consumers, where goods are tangible items and services are intangible experiences or tasks performed.

Steam Engine

A heat engine that performs mechanical work using steam as its working fluid, pivotal in the development of the Industrial Revolution.

Industrial Revolution

A period of major industrialization that took place during the late 18th and early 19th centuries, marked by significant technological advancements and societal changes.