Management Representations Letters

Question 0

Management responsibility letter reduces what?

Answer 0

The possibility of misunderstanding concerning management responsibility for financial statement

Question 1

AU 580

Answer 1

Written representations

Fulfilled responsibility for the preparation and presentation of financial statements and for completeness provided to auditor

Support other evidence relevant to financial statements by means of written representations

Respond appropriately to written rep presentations by management

Question 2

Client representation letter

Answer 2

Includes statements about the disclosure of compensating balances and other arrangements involving restrictions on cash balances

Question 4

Management representation letters

Answer 4

fraud, f/s, completeness, disclosure, recognition, and measurement

Should include “there are no violations whose effects should be considered for disclosure in financials or as a basis for recording a loss contingency”

Question 5

Materiality limits do not apply to?

Answer 5

Materiality limits do not apply with irregularities involving management or irregularities involving émigrés with significant roles in the internal control structure.

Fraud with other members of management

Availability of financials

Completeness of meetings

-includes management responsibility

Question 6

When do limits NOT apply when obtaining representations?

Answer 6

irregularities with management

Question 7

When do limits DO apply when obtaining representations?

Answer 7

amounts concerning related party transactions

Question 8

The date of the management representation letter should coincide with the date of the?

Answer 8

audit report