For Which of the Following Matters Should an Auditor Obtain

question 25

Multiple Choice

For which of the following matters should an auditor obtain written management representations?

• A) Management's cost-benefit justifications for not correcting internal control weaknesses.
• B) Management's knowledge of future plans that may affect the price of the entity's stock.
• C) Management's compliance with contractual agreements that may affect the financial statements.
• D) Management's acknowledgment of its responsibility for employees' violations of laws.

---

Definitions:

Persistent Inflation

Sustained increase in the general price level of goods and services in an economy over a period of time.

Excessive Government Spending

The situation where government expenditures significantly exceed revenue, leading to budget deficits and potential economic issues.

Quantity of Money

The total amount of money available in an economy at a specific time, including currency, coins, and balances in bank accounts.

Rate of Growth

The percentage change in a variable, such as economic output, population, or investment, over a specified period, indicating how quickly it is increasing or decreasing.