Question

"There are no violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency." The foregoing passage most likely is from a(an): a)management representation letter. b)entity engagement letter. c)report on compliance with laws and regulations. d)attestation report on internal controls.

Answer 1

Answer:

The answer is a) management representation letter.

Explanation:

The passage is most likely from a management representation letter which is drafted by a client’s management, or a company’s external auditors; it is part of a management representation letter that assures an auditor about account balances, and is usually signed after audit field work is completed.