When an audit is made in accordance with the auditing standards, the independent auditor must:
A) utilise statistical sampling.
B) confirm receivables at year-end.
C) obtain certain written representations from management.
D) observe the taking of physical inventory on the balance date.

Question

Quizplus · Accepted Answer

Obtaining certain written representations from management is a requirement of audit standards (such as, the requirement to obtain representation letter or management representation letter) and it is a crucial aspect of an audit. Options A, B, and D are not mandatory procedures, but can be used at the auditor's discretion depending on the circumstances.

When an Audit Is Made in Accordance with the Auditing