Auditors are required to obtain a Management Representation Letter at the conclusion of the audit

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Auditors are required to obtain a Management Representation Letter at the conclusion of the audit. The purpose for obtaining such a letter is to:

a. Limit their professional liability if the financial statements turn out to be materially misstated.

b. Remind management of its responsibility for the financial statements.

c. Confirm oral responses obtained by the auditor during the audit and the continuing appropriateness of those responses.

d. only B and C

e. A, B, and C

 

Type I subsequent events discovered before the issuance of the audit report require that the financial statements be adjusted to reflect those events.

True or False

 

The purpose for requiring an engagement quality review by an experienced partner who was not part of the engagement team is:

a. Reduce the professional liability of the engagement audit partner signing the audit opinion.

b. Assure that all audit program steps have been signed and dated as to their completion.

c. To determine whether client continuance meet the audit firm's standards.

d. To provide reasonable assurance that the audit and the audit documentation is complete and support the audit opinion on the financial statements.