Which of the Following Statements Is Not True with Respect

question 126

Multiple Choice

Which of the following statements is not true with respect to written representations?

• A) The failure of management to furnish them is a significant scope limitation, resulting in either an adverse opinion or a disclaimer of opinion.
• B) They should address management's responsibility for designing internal control to prevent and detect fraud.
• C) Auditors use them to corroborate information received during the audit from the client and its employees.
• D) They are dated the same date as the auditors' reports.

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Definitions:

Divestiture Order

A directive issued by a court or regulatory authority requiring a company to sell or divest assets or operations to promote competition or reduce monopoly power.

Competition Act

Legislation aimed at preventing anti-competitive practices in the marketplace, by regulating and promoting fair competition.

Trade Practices

Refers to the methods, operations, and conduct of a business or trade, including advertising, marketing, and selling of goods and services, often subject to regulation to ensure fairness and competition.

Regulation

Rules or directives made and maintained by an authority to manage or govern behavior within its jurisdiction, typically aiming at ensuring fairness, safety, or standards.