"There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on the financial statements." The foregoing passage is most likely from a:

Question

Quizplus · Accepted Answer

Choice "B" is correct. In a management (client) representation letter, the client will generally confirm that there have been no communications from regulatory agencies concerning matters that could have a material effect on the financial statements. Choice "A" is incorrect. A passage regarding communications from regulatory agencies generally will not be found in a special report. Choice "C" is incorrect. A passage regarding communications from regulatory agencies generally will not be found in a letter for an underwriter (i.e., a comfort letter). Choice "D" is incorrect. A passage regarding communications from regulatory agencies generally will not be found in a report on internal controls.

"There Have Been No Communications from Regulatory Agencies Concerning Noncompliance