Question

Auditors must gather "sufficient appropriate audit evidence" to support their audit opinion. Which of the following is least likely to serve as a substitute for performing other audit procedures?

a) the physical observation of the counting of company inventory
b) Sending letters to debtors or creditors of the company to confirm the amounts the company owes or is owed, respectively.
c) Tracing an amount on the financial statement back through the accounting system to the underlying supporting documentation
d) Obtaining a representation letter signed by top management

Answer 1

Obtaining a representation letter signed by top management is least likely to serve as a substitute for performing other audit procedures.

Step-by-step explanation:

Among the options provided, d) Obtaining a representation letter signed by top management is least likely to serve as a substitute for performing other audit procedures. While a representation letter can provide some assurance, it is not a direct form of audit evidence and may not provide sufficient support for the auditor's opinion.