For which of the following matters should an auditor obtain written management representations?
A) Management's cost-benefit justifications for not correcting internal control weaknesses.
B) Management's knowledge of future plans that may affect the price of the entity's stock.
C) Management's compliance with contractual agreements that may affect the financial statements.
D) Management's acknowledgment of its responsibility for employees' violations of laws.

Question

Quizplus · Accepted Answer

Management's compliance with contractual agreements that may affect the financial statements is a matter that requires written management representations to be obtained by the auditor. This representation helps the auditor in assessing the completeness of the financial statements and identifies any potential financial reporting risks associated with the entity's contracts. The other options do not require such written representations.

For Which of the Following Matters Should an Auditor Obtain