Final answer:
The management representation letter should be signed by the CEO and CFO, who are accountable for the company's financial statements. The correct option is b.
Step-by-step explanation:
The individual who should sign the management representation letter are the top executives who are primarily responsible for the company and its financial statements. This typically includes the chief executive officer (CEO) and the chief financial officer (CFO). They have the most comprehensive knowledge of the company's financial situation and the authority to make declarations on behalf of the company. It is crucial for auditors and shareholders to receive this letter as a part of the auditing process, which ensures that the financial statements accurately reflect the company's financial position.
The correct answer is b. The chief executive officer and the chief financial officer. The management representation letter is a formal written statement obtained from management by the auditor in connection with the financial statement audit. It is prepared by the management and signed by the individuals with the most authority and responsibility for the financial statements. In this case, the chief executive officer and the chief financial officer are typically the individuals with the highest level of authority and responsibility for the financial statements.