Nicholas Doulas, the partner-in-charge of the Fairfax Financial Holdings audit wrote a management representation letter. It would have included:

Question

Quizplus · Accepted Answer

The management representation letter typically includes both written details of verbal representations made by management during the audit (option A), as well as a representation that there have been no material frauds and errors (option B). Therefore, both options A and B are correct, making option C the best choice. Option D is not correct, as the management representation letter is a required element of an audit, and is therefore always prepared by the auditor.

Nicholas Doulas, the Partner-In-Charge of the Fairfax Financial Holdings Audit