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.

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Definitions:

Moving Expense Deduction

A tax deduction that was available to taxpayers who moved for work-related reasons, covering reasonable moving expenses. Note: This may be subject to changes in current tax law.

Alimony

A financial support that one spouse is legally obligated to provide to the other during or after a divorce process.

Moving Expenses

These are costs associated with relocating for a job or business that, under certain conditions, may be deductible for tax purposes.

Taxpayer

An individual or entity obligated to pay taxes to a federal, state, or local government.