Question

Which of the following is NOT a reason why the auditor requests that the client provide a letter of representation?

1) To confirm the client's understanding of their responsibilities
2) To obtain management's written confirmation of the financial statements
3) To assess the client's internal control system
4) To request additional information from the client

Answer 1

Auditors request a letter of representation to confirm the client's responsibilities and obtain written confirmation of the financial statements, not to assess internal controls.

Step-by-step explanation:

The reason NOT why an auditor requests a letter of representation from a client is to assess the client's internal control system. An auditor requests a letter of representation for several reasons, but assessing internal controls is not typically one of them. Instead, the letter serves to:

• Confirm the client's understanding of their responsibilities in relation to the financial statements.
• Obtain management's written confirmation of the truth and fairness of the financial statements.
• To request additional information or clarification from the client regarding the financial statements.