"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:
A)report on internal control.
B)special report.
C)management representation letter.
D)letter for underwriters.

Question

Quizplus · Accepted Answer

The passage is most likely a representation made by management to auditors in a management representation letter. This letter is prepared by management and covers a variety of topics including representations about the financial statements and any known or potential legal proceedings or claims. It is used as evidence by auditors to support their audit opinion.

"There Have Been No Communications from Regulatory Agencies Concerning Noncompliance