Question

The written representation from management _______.

A. Supplements the inquiries made of management regarding subsequent events and the evidence gathered from audit procedures.
B. Supplements the inquiries made of the auditor regarding subsequent events and the evidence gathered from audit procedures.
C. Can be drafted by the auditor and signed by the internal audit function on behalf of management.
D. Transfers legal liability for any financial statement errors to the auditor.

Answer 1

The written representation from management supplements inquiries made by auditors about subsequent events and supports evidence from audit procedures, making option A the correct answer.

Step-by-step explanation:

The written representation from management supplements the inquiries made of management regarding subsequent events and the evidence gathered from audit procedures. Thus, the correct answer to the student's question is A. It is important to understand that written representations are statements provided by management to the auditor, typically regarding the accuracy of the financial statements and the completeness of the information provided.

This serves as additional evidence to support other audit findings and help the auditor form an opinion on the financial statements. Option C is incorrect because internal audit functions do not have the authority to represent management, and option D is incorrect as the legal responsibility for financial statement accuracy remains with management, not the auditor.