Spoken and Written Representations Given by the Auditee's Officers,directors,owners,and Employees

question 17

True/False

Spoken and written representations given by the auditee's officers,directors,owners,and employees are generally considered reliable enough to stand on their own.

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Definitions:

Fraudulent Misrepresentation

An intentional false statement of a material fact made by one party to induce another party to enter into a contract.

Duress

Any unlawful act or threat exercised on a person whereby the person is forced to enter into an agreement or to perform some other act against his or her will.

Negligent Misrepresentation

A false statement made carelessly that is relied upon by others, leading to their financial loss.

Annullment

A legal procedure that declares a marriage null and void, as if it never legally existed, due to various possible reasons such as fraud or incapacity.