The Client Includes Which of the Following in Its Representation

question 7

Multiple Choice

The client includes which of the following in its representation letter:

• A) a statement that all transactions for the period under audit have been recorded.
• B) a statement that management has no knowledge of fraud amongst its employees.
• C) a statement that management has responsibility for the accuracy of the financial statements.
• D) All of the above.

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Definitions:

Durable Power

A legal document that grants someone the authority to act on another's behalf in legal or financial matters, continuing in effect even if the grantor becomes incapacitated.

Incapacitated

Refers to the state where an individual or entity is legally unable to make their own decisions due to mental or physical disability.

Partially Disclosed

Refers to a situation where some but not all relevant information has been revealed.