A Purpose of a Management Representation Letter Is to Reduce

Multiple Choice

A purpose of a management representation letter is to reduce:

A) Audit risk to an aggregate level of misstatement that could be considered material.
B) An auditor's responsibility to detect material misstatements only to the extent that the letter is relied on.
C) The possibility of a misunderstanding concerning management's responsibility for the financial statements.
D) The scope of an auditor's procedures concerning related party transactions and subsequent events.