Which of the Following Statements Ordinarily Is Included Among the Written

question 49

Multiple Choice

Which of the following statements ordinarily is included among the written client representations obtained by the auditor?

• A) Compensating balances and other arrangements involving restrictions on cash balances have been disclosed.
• B) Management acknowledges responsibility for illegal actions committed by employees.
• C) Sufficient evidential matter has been made available to permit the issuance of an unqualified opinion.
• D) Management acknowledges that there are no material weaknesses in the account balances.

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Definitions:

Marginal Rate

The rate at which something changes with each additional unit, such as the marginal tax rate, which is the rate applied to each additional dollar of income.

Substitution

The economic principle where consumers replace more expensive items with less costly alternatives.

Indifference Curve

A graphical representation of different combinations of two goods or services among which a consumer is indifferent, showing preferences of consumption.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to the behavior observed with normal goods.