A letter where accountants sign that they have been notified that a particular recipient of the financial statements and audit report intends to rely upon them for particular purposes is known as a(n)________.

Question

Quizplus · Accepted Answer

A letter where accountants sign that they have been notified that a particular recipient of the financial statements and audit report intends to rely upon them for particular purposes is known as a reliance letter. This letter is used to show that the recipient of the financial statement is relying on the auditor's report and financial statements for specific purposes. It is important to note that the reliance letter does not provide any additional assurance or change the auditor's responsibilities.

A Letter Where Accountants Sign That They Have Been Notified