The following five categories of specific matters that might be included in a management representation letter are consistent with ASA 580:
A) financial reports; completeness of information; internal control; significant risks and uncertainties; and subsequent events.
B) financial reports; accuracy of information; recognition, measurement, and disclosure; significant risks and uncertainties; and subsequent events.
C) financial reports; completeness of information; recognition, measurement, and disclosure; going concern; and subsequent events.
D) financial reports; completeness of information; recognition, measurement, and disclosure; significant risks and uncertainties; and subsequent events.

Question

Quizplus · Accepted Answer

The five categories of specific matters that might be included in a management representation letter consistent with ASA 580 are financial reports; completeness of information; recognition, measurement, and disclosure; significant risks and uncertainties; and subsequent events. Choice D includes all these five categories. A and B do not include going concern, which is one of the categories. Choice C includes going concern, but does not include significant risks and uncertainties. Therefore, choice D is the best option.

The Following Five Categories of Specific Matters That Might Be