Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Audit Engagement, Audit Program, Audit Documentation and Audit Evidence

As per SA 210, which of the following may an audit engagement letter refer to concerning management's cooperation?

The letter may record management's agreement to supply draft financial statements and any accompanying information in time for the auditor to finish the audit under the proposed timetable. It may also record the expectation of written representations from management.

  1. AManagement's agreement to make draft financial statements and other accompanying information available in time to complete the audit per the proposed timetableCorrect
  2. BManagement's right to withhold written representations
  3. CManagement's freedom to hide facts arising after the auditor's report date
  4. DManagement's authority to fix the auditor's opinion

Explanation

SA 210 notes the letter may record management's agreement to make draft financial statements and accompanying information available in time for the proposed timetable. It also mentions the expectation of written representations and agreement to inform the auditor of facts arising between the report date and issue of the statements. The other options conflict with this.

Did you get it right without looking?

One question tells you little. A timed set on Audit Engagement, Audit Program, Audit Documentation and Audit Evidence shows your real accuracy, how long you take and where you lose marks.

Practise Audit Engagement, Audit Program, Audit Documentation and Audit EvidenceFree diagnostic mock

More Audit Engagement, Audit Program, Audit Documentation and Audit Evidence questions