25. A purpose of a management representation letter is to reduce: (a) The possibility of a misunderstanding concerning management's (b) Audit risk to an aggregate level of misstatement that could be (c) The scope of an auditor's procedures conceming related party (d) An auditor's responsibility to detect material misstatements only to responsibility for the financial statements. considered material. transactions and subsequent events. the extent that the letter is relied on. 26. The primary reason an auditor requests that letters of inquiry be sent to a client's attorneys is to provide the auditor with: (a) Corroboration of the information furnished by management about litigation, claims, and asses A description and evaluation of litigation, claims, and assessments that existed at the balance sheet date. The attorneys' opinions of the client's historical experiences in recent similar litigation. The probable outcome of asserted claims and pending or threatened litigation. sments. (b) (c) (d) 27. An auditor is concerned with completing various phases of the audit after the balance sheet date. This subsequent period extends to the date of the: (a) Public issuance of the financial statements. (b) Auditor's report. (c) Delivery of the auditor's report to the client. (d Final review of the audit working papers. 28. Which of the following procedures should an auditor ordinarily perform regarding subsequent events? (a) (b) (c) (d) Communicate material weaknesses in internal control to the client's audit committee. Send second requests to the client's customers who failed to respond to initial accounts receivable confirmation requests. Review the cutoff bank statements for several months after the year end. Compare the latest available interim financial statements with the financial statements being audited