Which One of the Following Is Not a Purpose of the Management

question 151

Multiple Choice

Which one of the following is not a purpose of the management representation letter?

• A)It clearly documents the audit procedures that were performed by the auditors.
• B)It further acknowledges management's responsibility for the financial statements.
• C)It confirms oral responses obtained by the auditor earlier in the audit and the continuing appropriateness of those responses.
• D)It reduces the possibility of misunderstanding concerning the matters that are the subject of the representations.

---

Definitions:

Statute of Limitations

The statute of limitations is a law that sets the maximum time after an event within which legal proceedings may be initiated.

Residential Pesticide

Chemical substances used in homes or in domestic environments to control, deter, or eliminate pests.

Federal Statute

A law enacted by the national government of a country, which applies throughout the country and supersedes state or local laws in areas of federal jurisdiction.

Federal Court

Courts established by the federal government of a country that have jurisdiction over disputes involving federal laws, constitutional matters, and other cases specifically designated by federal statutes.