Why does an auditor obtain written representations from management?
Correct answer: B. To confirm management's stated responsibilities and assertions
- A. To replace all other audit evidence
- B. To confirm management's stated responsibilities and assertions
- C. To transfer the audit opinion to management
- D. To guarantee that no employee committed fraud
Explanation
Written representations document management's acknowledgment of its responsibilities and support particular matters discussed during the audit. They supplement evidence and cannot replace sufficient appropriate audit evidence or guarantee the absence of fraud.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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