"In connection with an audit of our financial statements, management has prepared, and furnished to our auditors a description and evaluation of certain contingencies." The foregoing passage most likely is from a(an):

Question

Quizplus · Accepted Answer

Choice "A" is correct. Legal counsel is best able to corroborate the description and evaluation of contingencies provided by management. Choice "B" is incorrect. The management representation letter serves to confirm, in writing, representations provided to the auditor. It does not include a statement indicating that management has prepared and furnished a list of contingencies. Choice "C" is incorrect. The audit committee would not communicate to the auditor regarding the list of contingencies prepared by management. Choice "D" is incorrect. It would be inappropriate to indicate in the footnotes whether specific information was provided by management to the auditor.

"In Connection with an Audit of Our Financial Statements, Management