When performing a review of a nonpublic company,the auditors must obtain in a representation letter acknowledgement of management for its responsibility for reach of the following except:
A)Responsibility for identifying illegal acts committed by employees.
B)Responsibility for the financial statements conforming with generally accepted accounting principles.
C)Responsibility to prevent and detect fraud.
D)Knowledge of any actual or suspected fraud that is material.

Question

Quizplus · Accepted Answer

While management has a responsibility to prevent and detect fraud, they are not responsible for identifying illegal acts committed by employees. This responsibility falls to the auditors during their review. Therefore, option A is the correct answer.

When Performing a Review of a Nonpublic Company,the Auditors Must