To which of the following matters would materiality limits not apply when obtaining written client representations?

Question

Quizplus · Accepted Answer

Choice "C" is correct. Materiality limits would not apply when obtaining written client representations regarding irregularities involving management, because even immaterial instances of fraud may have serious implications with respect to management's integrity. Choices "A", "B", and "D" are incorrect. An auditor would apply materiality limits to matters that might affect recognition, measurement, and disclosure in the financial statements, including losses from sales commitments, unasserted claims and assessments, and noncompliance with contractual agreements.

To Which of the Following Matters Would Materiality Limits Not