A client representation letter is a written statement from a non-independent source and therefore
A)cannot be regarded as reliable evidence on its own.
B)can be regarded as reliable evidence only if the auditor finds strong internal controls.
C)can be regarded as reliable evidence if the high-level corporate officials who sign it are trustworthy.
D)needs to be confirmed by an outside,independent source such as a financial institution or law firm.

Question

Quizplus · Accepted Answer

A client representation letter, although useful, cannot be solely relied on as a piece of evidence because it is not an independent source. It is subjective and may be biased towards the client's interests. Therefore, the auditor needs to obtain additional evidence from independent external sources to corroborate the information provided in the letter.

A Client Representation Letter Is a Written Statement from a Non-Independent