Which of the Following Is Not a Reason Why the Auditor

question 64

Multiple Choice

Which of the following is not a reason why the auditor requests that the client provide a letter of representation?

• A) Professional auditing standards require the auditor to obtain a letter of representation.
• B) It impresses upon management its responsibility for the accuracy of the information in the financial statements.
• C) It provides written documentation of the oral responses already received to inquiries of management.
• D) It provides written documentation, which is a higher quality of evidence than management's oral responses to inquiries.

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Definitions:

ERG Theory

A motivation theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Physiological Well-Being

A state of physical health and functioning that allows an individual to perform daily activities without limitations or distress.

Maslow's Hierarchy

A theory of psychological motivation based on a hierarchy of needs, from basic survival needs to self-actualization.

Lower-Order Physiological Needs

Basic human necessities such as food, water, shelter, and sleep that are essential for survival.