Auditing Essay Question 1 Determine which of the following statements would typi
ID: 2472743 • Letter: A
Question
Auditing
Essay Question 1
Determine which of the following statements would typically be included in the management representation letter obtained by the auditor. Indicate your answer by inserting “Yes” or “No” in the box provided next to the statement.
1.
The company is not independent with regard to the financial statements. ( )
2.
The company approved all estimates made by the auditor in the financial statements. ( )
3.
The company has made available to the auditor all minutes of the meetings of the board of directors.( )
4
All information in the notes to financial statements is the representation of the auditor. ( )
5.
The company has no plants that may materially affect the carrying value of the liabilities. ( )
6.
We have no knowledge of alleged fraud or suspected fraud.( )
7.
All items included in this letter are assumed to be immaterial. ( )
8.
Related party transactions have been properly disclosed in the financial statements.( )
9.
No events have occurred subsequent to the balance sheet date that would require disclosure in the financial statements. ( )
10
We have recorded no transactions that would have a negative effect on earnings.( )
1.
The company is not independent with regard to the financial statements. ( )
2.
The company approved all estimates made by the auditor in the financial statements. ( )
3.
The company has made available to the auditor all minutes of the meetings of the board of directors.( )
4
All information in the notes to financial statements is the representation of the auditor. ( )
5.
The company has no plants that may materially affect the carrying value of the liabilities. ( )
6.
We have no knowledge of alleged fraud or suspected fraud.( )
7.
All items included in this letter are assumed to be immaterial. ( )
8.
Related party transactions have been properly disclosed in the financial statements.( )
9.
No events have occurred subsequent to the balance sheet date that would require disclosure in the financial statements. ( )
10
We have recorded no transactions that would have a negative effect on earnings.( )
Explanation / Answer
The company is not independent with regard to the financial statements. ( n)
The company approved all estimates made by the auditor in the financial statements. (N)
The company has made available to the auditor all minutes of the meetings of the board of directors.( Y)
All information in the notes to financial statements is the representation of the auditor. ( N)
The company has no plants that may materially affect the carrying value of the liabilities. ( Y)
We have no knowledge of alleged fraud or suspected fraud.( Y)
All items included in this letter are assumed to be immaterial. ( N)
Related party transactions have been properly disclosed in the financial statements.( Y)
No events have occurred subsequent to the balance sheet date that would require disclosure in the financial statements. ( Y)
No events have occurred subsequent to the balance sheet date that would require disclosure in the financial statements. ( N)
Management representations deals with financial statements, Completeness of information, Recognition, measurement and disclosure
The company is not independent with regard to the financial statements. ( n)
The company approved all estimates made by the auditor in the financial statements. (N)
The company has made available to the auditor all minutes of the meetings of the board of directors.( Y)
All information in the notes to financial statements is the representation of the auditor. ( N)
The company has no plants that may materially affect the carrying value of the liabilities. ( Y)
We have no knowledge of alleged fraud or suspected fraud.( Y)
All items included in this letter are assumed to be immaterial. ( N)
Related party transactions have been properly disclosed in the financial statements.( Y)
No events have occurred subsequent to the balance sheet date that would require disclosure in the financial statements. ( Y)
No events have occurred subsequent to the balance sheet date that would require disclosure in the financial statements. ( N)
Management representations deals with financial statements, Completeness of information, Recognition, measurement and disclosure
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