To Whom Should Written Representations Be Addressed

question 31

Multiple Choice

To whom should written representations be addressed?

• A)Auditors
• B)Board of directors
• C)Client
• D)Stockholders

---

Definitions:

Gross Profit Method

A method of estimating inventory cost that is based on the relationship of gross profit to sales.

Merchandise Destroyed

Refers to goods or stock that have been ruined or damaged beyond sellable condition, often resulting in a loss for the business.

Retail Inventory Method

An accounting method used by retailers to estimate inventory value by converting retail prices to cost values.

Physical Count of Inventory

The manual process of counting all the physical goods a company has in stock at a specific time.