When Performing a Review (SSARS Review) of Financial Statements, the Accountant

question 54

True/False

When performing a review (SSARS review) of financial statements, the accountant is required to obtain a letter of representation from management.

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Definitions:

Accounts Payable Control

A system or method used to manage and track the money owed by the company to its creditors or suppliers.

Subsidiary Ledger

A detailed ledger that contains the details to support a main ledger account, such as accounts receivable or accounts payable.

Accounts Receivable Control

Practices and procedures in place to monitor and manage the amounts owed to a business by its customers for goods or services delivered on credit.

Subsidiary Ledger

A detailed ledger that contains supporting information for a main accounting ledger, often used for accounts receivable or accounts payable.