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:

Modified AGI

Adjusted Gross Income (AGI) with certain adjustments added back in, often used in tax calculations to determine eligibility for certain tax benefits.

Married Filing Joint

A filing status on U.S. tax returns allowing married couples to combine their incomes, deductions, and credits on a single tax return, potentially leading to tax benefits.

American Opportunity Tax Credit

A credit that allows qualifying students or their parents to reduce their federal income tax based on education expenses paid.

Modified AGI

Adjusted Gross Income with certain deductions added back in, used for determining eligibility for specific tax deductions and credits.