Which of the following would the auditor expect to find in the client's management representation letter?
A) management's recommendations for internal control effectiveness improvements
B) management's plans for improving product quality
C) management's compliance with contractual arrangements that impact the financial statements
D) management's goals for improving earnings per share

Question

Quizplus · Accepted Answer

The management representation letter is a letter from the management to the auditor that provides written representations about a variety of matters related to the financial statements. One of the matters that management is required to represent is compliance with contractual arrangements that impact the financial statements. Therefore, option C is the correct answer. Options A, B, and D are not likely to be included in the management representation letter as they are not relevant to the auditor's assessment of the financial statements.

Which of the Following Would the Auditor Expect to Find