After his auditing class at a local state university, James stops by to see the professor during his office hours. James asks the professor

to elaborate a little more on and provide an overview of the management representation letter. Which of the following is the

professors' best response to this query?

Perhaps the best way to conceptualize the management representation letter and the purpose behind sending it is to ensure

that management makes the auditors fully aware of any and all issue that may cause future litigation for the client and$/$or

the auditor. The audit firm cannot be held liable if this letter is not sent.

The management representation letter is typically sent to the client's management by the auditing firm towards the end of

the attestation engagement. It details all recommendations the audit firm to amend the financial statements and thus

decrease liability.

The easiest way to think about the management representation letter is to think of it as a mechanism by which the audit firm

can absolve itself of any liability associated with the audit.

The best way to understand the management representation letter is to think of it as management's communication to the

auditors acknowledging responsibility for the financial statements.