As Part of an Audit,a CPA Often Requests a Representation

question 55

Multiple Choice

As part of an audit,a CPA often requests a representation letter from the client.Which one of the following is not a valid purpose of such a letter?

• A) To provide audit evidence.
• B) To emphasize to the client their responsibility for the fairness of the financial statements.
• C) To satisfy himself or herself that a certain account balance is fairly stated when certain customary auditing procedures are not performed.
• D) To provide possible protection to the CPA against a charge of knowledge in cases where fraud is subsequently discovered to have existed in the accounts.

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Definitions:

Oxidation-Reduction

A chemical process involving the transfer of electrons between two substances, affecting their oxidation states and energy levels.

Reversible Reaction

A chemical reaction that can proceed in both directions, where products can revert to the original reactants under certain conditions.

Product Formation

The creation of end products in a chemical reaction, often catalyzed by enzymes in biological systems.

Reactant Formation

The process in a chemical reaction where substances (reactants) combine or change to produce new substances (products).