a. Communications with the audit committee concerning weaknesses in internal control Answer: b. The completeness and availability of minutes of stockholders' and directors' meetings. Which of the following matters would an auditor most likely include in a management representation letter?
Key Co. plans to present comparative financial statements for the years ended December 31, 2005, and 2006, respectively. Smith, CPA, audited Key's financial statements for both years and plans to report on the comparative financial statements on May 1, 2007. Key's current management team was not present until January 1, 2006. What period of time should be covered by Key's management representation letter? -January 1, 2005, through
December 31, 2006. January 1, 2005, through May 1, 2007. The management representation letter should address all periods covered by the auditor's report. Key's management representation letter, therefore, should cover the two periods being audited up through the date of the report, i.e., from January 1, 2005, through May 1, 2007. This requirement exists even if management was not present during all periods covered by the auditor's report. What should a management representation letter include?Contents of a Management Representation Letter
All financial records have been made available to the auditors. All board of directors minutes are complete. Management has made available all letters from regulatory agencies regarding financial reporting noncompliance. There are no unrecorded transactions.
What is the main purpose of a written management representation letter quizlet?A management representation letter is obtained by the auditor to reduce the possibility of a misunderstanding concerning management's responsibility for the financial statements and to document the representations made by management during the course of the audit.
What is the main purpose of a written management representation letter?It serves to document management's representations during the audit, reducing misunderstandings of management's responsibilities for the financial statements. For audit evidence, it is reliable if the auditor has no other means of obtaining evidence.
What is an auditors management letter?Management Letter means a letter prepared by the auditor which discusses findings and recommendations for improvements in internal control, which were identified during the audit and were not required to be included in the auditors' report on internal control, and other management issues.
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Which of the following matters would an auditor most likely include in a management representation letter?
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