Question

Choose the correct answer
Which of the following items would appear in management’s representations with no limitation due to materiality?

A. Statements that a physical inventory was taken and inventory is properly valued
B. Information regarding all misstatements detected during the audit
C. Recommendations for improvements in the client’s operations
D. The availability of all financial records and related data to auditors

Answer 1

Management's representations may be limited to the matters that are considered individually or collectively material to the financial statements

Management and the auditor have reached an understanding on materiality for this purpose

Materiality considerations would not apply to those :

that are not directly related to amounts included in the financial statements

The availability of all financial records and related data to auditors

Option (D) is correct.