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

A) Professional auditing standards require the auditor to obtain a letter of representation.
B) It impresses upon management its responsibility for the accuracy of the information in the financial statements.
C) It provides written documentation of the oral responses already received to inquiries of management.
D) It determines the type of opinion the auditor will issue on the financial statements

User Michali
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1 Answer

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Final answer:

The auditor requests a letter of representation from the client for several reasons, including adherence to professional auditing standards, reinforcing management's responsibilities, and documenting oral responses. However, the determination of the audit opinion type is not one of these reasons; instead, it is based on the auditor's evaluation of the evidence collected during the audit.

Step-by-step explanation:

The reason which is not why the auditor requests that the client provide a letter of representation is 'It determines the type of opinion the auditor will issue on the financial statements'. A letter of representation serves several key purposes during an audit. First, it is required by professional auditing standards as part of the evidence the auditor gathers. Second, it reinforces management's responsibility for the accuracy of the financial statements. Third, it serves as written documentation corroborating the oral responses provided by management regarding various aspects of the financial statements and disclosures.

However, the type of opinion the auditor issues on the financial statements is determined by the auditor's independent assessment of the financial statements, considering all the evidence gathered during the audit, not on the basis of management's representation. The letter of representation cannot influence the auditor's judgment in determining the audit opinion, which is based on the evidence obtained and evaluated in accordance with the relevant auditing standards.

User Quickredfox
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