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Exam AUD topic 1 question 194 discussion

Actual exam question from AICPA's AUD
Question #: 194
Topic #: 1
[All AUD Questions]

Which of the following is true about management representations obtained during an engagement to review the financial statements of a nonissuer?

  • A. Written representations from the current management are required for all periods being reported on.
  • B. Written representations with respect to prior periods should not be provided by the current management if they were not present during those periods.
  • C. Written representations should be addressed to members of management whom the accountant believes are responsible for and knowledgeable about the matters covered in the representation letter.
  • D. Written representations need not include information concerning subsequent events.
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Suggested Answer: A 🗳️
Choice "A" is correct. Written representations from the current management are required for all periods being reported on.
Choice "B" is incorrect. Written representations from the current management are required for all periods being reported on, even if the current management was not present during all such periods.
Choice "C" is incorrect. Written representations should be addressed to the accountant. The letter should be signed by members of management whom the accountant believes are responsible for and knowledgeable about the matters covered in the representation letter.
Choice "D" is incorrect. Written representations should include information concerning subsequent events.

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