The primary purpose of the management representation letter is to: Please add ch

Question

The primary purpose of the management representation letter is to: Please add checkmark next to the correct answer(s).

A. communicate to management any material weaknesses and significant deficiencies in internal controls discovered during the audit.

B. confirm the understanding between the auditor and management regarding the nature,extent, and timing of the audit.

C. provide client management with detailed information about the hours worked during the audit.

D. provide the auditor with written documentation of management’s oral responses to inquiries made by the auditor during the audit.

E. communicate to management the auditor’s recommendations for improving the efficiency and effectiveness of the client’s business operations.

Explanation / Answer

Solution: provide the auditor with written documentation of management’s oral responses to inquiries made by the auditor during the audit.

Explanation: The management letter confirms representations that have been made orally by management team during the audit. This letter attests the financial statements accuracy that the management team has submitted to the auditors for their analysis

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