What Are the Three Key Features That Must Be Included

question 31

Essay

What are the three key features that must be included in the management representation letter?

Identify major sources of federal revenue and understand the budget allocation to different expenditures.

Understand the historical and current tax rates, and predict the effects of future changes in tax legislation.

Recognize the role and impact of social security taxes and other payroll taxes.

Identify government transfer expenditures and their role in the federal budget.

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Definitions:

Explicit Knowledge

The more objective, rational, and technical types of knowledge.

Tacit Information

Knowledge that is understood or learned through experience rather than being explicitly mentioned or taught.

Explicit Information

Clear and direct information that is fully articulated and expressed without the need for inference or interpretation.

Tacit Knowledge

The cumulative store of subjective or experiential learning, which is highly personal and hard to formalize.