Which of the Following Items Would Appear in a Management

question 48

Multiple Choice

Which of the following items would appear in a management letter of representation?

• A)That a physical inventory was taken,and properly valued.
• B)That the control systems are operating effectively.
• C)That management has adequate insurance to ensure its ongoing operations.
• D)That all financial records and related data were made available to the auditors.

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Definitions:

Fixtures

Items that were originally personal property but have been attached to real property in a manner that they are considered legally part of the real property.

Real Property

Land and any structures attached to it, such as buildings or houses, including the rights associated with ownership of the land.

Appurtenance

A legal term referring to an accessory or adjunct that is attached to and passes with the principal property.

Ceiling Fans

Mechanical fans mounted on the ceiling of a room, used to circulate air for cooling or ventilation purposes.