If management refuses to furnish certain written representations that the auditor believes are essential,which of the following is appropriate?
A)The auditor can rely on oral evidence relating to the matter as a basis for an unmodified (unqualified)opinion.
B)The client's refusal does not constitute a scope limitation that may lead to a modification of the opinion.
C)This may have an effect on the auditor's ability to rely on other representations of management.
D)The auditor should issue an adverse opinion because of management's refusal.

Question

Quizplus · Accepted Answer

If management refuses to provide certain written representations that the auditor believes are essential, it may impact the auditor's ability to rely on other representations made by management. However, it does not necessarily result in a scope limitation or a need to issue an adverse opinion. The auditor may need to revise their audit procedures or modify their opinion accordingly based on the impact of the lack of written representation provided by management. Option A is incorrect as an auditor cannot rely solely on oral evidence to support their opinion. Option B is incorrect as a refusal by management to provide certain written representations can constitute a scope limitation. Option D is incorrect as refusal by management does not necessarily warrant an adverse opinion.

If Management Refuses to Furnish Certain Written Representations That the Auditor