The auditor should consider modifying the opinion if the management refuses to sign the updated representation letter.

Question

Quizplus · Accepted Answer

The representation letter is an essential part of the audit process, and the auditor may consider modifying the opinion if management refuses to sign it. The representation letter confirms that management has provided all the necessary information and disclosures to the auditor and may indicate that the financial statements are accurate and complete. Without this confirmation, the auditor may not be able to rely on the completeness and accuracy of the financial statements, which could lead to a modification of the opinion.

The Auditor Should Consider Modifying the Opinion If the Management