Information usually comprised in a letter of representation

Reference no: EM1324876

Leslie Morgan, CPA, has prepared a letter of representation:

Leslie Morgan, CPA, has prepared a letter of representation for the president and controller to sign. It contains references to the following items:

1. Inventory is fairly stated at the lower of cost or market and includes no obsolete items.

2. All actual and contingent liabilities are properly included in the financial statements.

3. All subsequent events of relevance to the financial statements have been disclosed.

a. Why is it desirable to have a letter of representation from the client concerning these matters when the evidence accumulated during the course of the audit is meant to verify the same information?

b. To what extent is the letter of representation useful as audit evidence? Explain.

c. List several other types of information commonly included in a letter of representation.

Reference no: EM1324876

Questions Cloud

Prepare a network design document : Would you need IP addresses? Static or dynamic? How many? and How will your network be managed? Do you need any specialized devices to manage your network?

Effective problem solving : Write down a description of some general barriers to solving problems effectively.

What is the definition of creativity : What is the definition of creativity? Describe a problem in which creativity or insight could have been applied to bringing about a solution or a better solution.

Groupware systems : Groupware systems - Try to distill some key lessons from what you know about groupware and other information technologies that would enable effective implementation of such systems.

Information usually comprised in a letter of representation : List several other types of information commonly included in a letter of representation.

Intelligence definition and wisdom : Provide a personal definition of intelligence. Based on your definition, give an illustration of a person explaining intelligence in a real-world situation.

Specific culture that might interest to further research : Two topics related to a specific culture that might interest to further research.

Cognitive psychology-emergence and evolution : Evaluate the effects of the decline of behaviorism on the discipline of the cognitive psychology.

Why we remember emotionally charged moments : Flashbulb Memories: Why We Remember Emotionally Charged Moments

User Account

All Pages