The Multiple Choice Questions Blog

For the following statement concerning written representations letters, select whether it is of no relevance, depends on the type of business, true or false.

• Written confirmations are required from all client staff who have made oral representations.

Select ONE answer:

1. False
2. No relevance
3. Depends on the type of business
4. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – It is usually only of senior management that auditors request written representations as they are responsible for matters of judgement, cooperating with the auditors etc.
2. Not correct
3. Not correct
4. Not correct

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For the following statement concerning written representations letters, select whether it is of no relevance, depends on the type of business, true or false.

• The written representation letter must include a list of all uncorrected misstatements.

Select ONE answer:

1. No relevance
2. False
3. Depends on the type of business
4. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – The written representation letter must include a list of all uncorrected misstatements. It shall also include a statement that the directors believe the total of uncorrected misstatements to be immaterial to the financial statements as a whole.

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For the following statement concerning written representations letters, select whether it is of no relevance, depends on the type of business, true or false.

• The written representation letter must be dated before the auditor’s report.

Select ONE answer:

1. No relevance
2. False
3. True
4. Depends on the type of business

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – They should be dated before (although not much before) the auditor’s report as they form part of the audit evidence on which the auditor is relying to reach his opinion.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

For the following statement concerning written representations letters, select whether it is of no relevance, depends on the type of business, true or false.

• A written representation letter is only required for new clients.

Select ONE answer:

1. No relevance
2. False
3. Depends on the type of business
4. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – Written representation letters are required on an annual basis so that representations are valid for each specific audit.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

On which ONE of the following matters should an auditor seek a written representation?

Select ONE answer:

1. Whether there are plans to abandon product lines that will result in obsolete inventory
2. Whether plant and equipment held on the client’s premises exists
3. The existence (or not) of reconciling items between the cash balance and the bank statement balance
4. Whether there are any subsequent events after the year-end regarding the popularity of the new canteen menu

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Auditors may ONLY obtain written representations to support other audit evidence (ISA 580)
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.