[Anonymous]

Question CPA-06032.B

Management’s Written representation to the auditor in connection with a governmental audit would most likely include:

a. Representation that all known noncompliance had been reported or negative assurance that other noncompliance likely does not exist.

b. Negative assurance that the government has complied with compliance requirements

c. Identification of management’s interpretation of compliance requirements that are subject to different interpretations.

d. A statement that management had identified and disclosed all material government programs to the auditor.

Explanation

Choice “c” is correct. The management letter will include identification of management’s

interpretation of compliance requirements that are subject to different interpretations.

Choice “d” is incorrect. The representation letter should include a statement that

management has disclosed all governmental programs to the auditor.

Choice D says incorrect, but agrees that it should be included in the mgmnt’s representation letter. Is the question wrong or am I missing something?

[Anonymous]

d. A statement that management had identified and disclosed all material government programs to the auditor.

The auditor disclosed ALL, not only material government programs.

The word “material” makes this choice incorrect.

[Anonymous]

Correct! the “all” wording is always tricky and is a good red flag when doing MC

[Author]

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