Ruben Chavez, a public accountant, has prepared a management representation letter for the president and controller to

Question:

Ruben Chavez, a public accountant, has prepared a management representation letter for the president and controller to sign. It contains references to the following items:
1. Inventory is fairly stated at the lower of cost or net realizable value and includes no obsolete items.
2. All actual and are properly included in the statements.
3. All subsequent events of relevance to the have been disclosed.
REQUIRED
a. Why is it desirable to have a letter of representation from the client concerning the above matters when the audit evidence accumulated during the course of the engagement is meant to verify the same information?
b. To what extent is the letter of representation useful as audit evidence? Explain.
c. List several other types of information commonly included in a letter of representation. Contingent liabilities
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