Discuss AICPA CPA-Auditing Exam Topic 1 Question 29

Which of the following statements might be included among additional written client representations obtained by the auditor?

ACompensating balances and other arrangements involving restrictions on cash balances have been disclosed.

BManagement acknowledges responsibility for illegal actions committed by employees.

CSufficient audit evidence has been made available to permit the issuance of an unqualified opinion.

DManagement acknowledges that there are no material weaknesses in internal control.

Suggested Answer: A

Choice 'a' is correct. The purpose of the management representation letter is to confirm management's oral evidence supplied during the engagement. Specific written representations obtained by the auditor might include acknowledgment that all compensating balances or other restrictions on cash have been disclosed.

Choice 'b' is incorrect. Management acknowledges responsibility for the fair presentation of the financial statements, not for illegal actions committed by employees.

Choice 'c' is incorrect. The auditor must decide whether there is sufficient audit evidence available to permit the issuance of an unqualified opinion, and does not request management confirmation of this decision.

Choice 'd' is incorrect. Management is responsible for the design and maintenance of internal control of the company, but it is the auditor who must determine whether material weaknesses in internal control exist.

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8 comments · newest first

Kimbery 11 months ago

A and C are solid, but B raises some eyebrows.

Janet 12 months ago

D sounds too good to be true, really?

Myrtie 12 months ago

C is essential for a clean audit opinion!

Christiane 12 months ago

I disagree, B seems too risky to include.

Elinore 1 year ago

A is definitely a must-have for transparency.

Kathryn 1 year ago

I'm confident I know the answer to this. The cloud provider is responsible for the physical infrastructure and virtualization platform security.

Carmen 1 year ago

I think the

element is the right choice for centering quotes, but I'm not 100% sure if it also indents them.

Domitila 1 year ago

I'm not totally sure about this, but I remember something about citizens' arrest rules in class. Was it that a misdemeanor has to actually happen for them to arrest?

AICPA CPA-Auditing Exam - Topic 1 Question 29 Discussion