When Considering the Use of Management's Written Representations as Audit

question 63

Multiple Choice

When considering the use of management's written representations as audit evidence about the completeness assertion, an auditor should understand that such representations:

• A) Complement, but do not replace, substantive procedures designed to support the assertion.
• B) Constitute sufficient evidence to support the assertion when considered in combination with a moderate assessed level of control risk.
• C) Are generally sufficient audit evidence to support the assertion regardless of the assessed level of control risk.
• D) Replace the assessed level of control risk as evidence to support the assertions.

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Definitions:

Differentiation

The process of identifying and defining the differences or distinctions between things or people, often used in the context of individual psychological development or in systems theory.

Extra sex-linked chromosomes

Condition involving the possession of more than the normal number of sex chromosomes, potentially leading to various developmental and physiological anomalies.

Failure to thrive

A medical condition typically observed in infants and children, characterized by significantly slower than expected growth and development.

Excessive sleep

Sleeping for durations significantly longer than the typical 7-8 hours per night, which might be indicative of underlying health issues or sleep disorders.