Question

The date of the management representation letter received from the client should

A) be the date of latest subsequent event disclosed in the notes to the financial statements.
B) be dated no earlier than the date of the audit report.
C) have the same date as the date of the balance sheet.
D) have the same date as the date of the engagement letter

Answer 1

The management representation letter should be dated no earlier than the date of the audit report to include all relevant information up to the auditor's conclusion.

Step-by-step explanation:

The management representation letter should be dated no earlier than the date of the audit report. Therefore, the correct option is B) be dated no earlier than the date of the audit report. This letter is a formal statement by management to the auditors, confirming certain matters or financial information that they have stated or represented during the audit. It is important that the date of the management representation letter is on or after the date of the auditor's report, as it needs to include all of the information up to the date of the auditor's conclusion on the financial statements.