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:

Intrinsic Value

The actual value of a company or an asset based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.

P/E Multiple

Price-to-Earnings ratio, a valuation metric calculated by dividing the current market price of a stock by its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

EPS

Earnings Per Share; a company's profit divided by its number of common outstanding shares, indicating the company’s profitability.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company based on fundamentals and independent of market price.