Question

There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in, financial reporting practices that could have a material effect on the financial statements. The foregoing passage is most likely from a

1) report on internal control
2) special report
3) management representation letter
4) letter for underwriters

Answer 1

The passage is most likely from a 3) management representation letter. It confirms facts and statements made in the financial statements.

Step-by-step explanation:

The passage is most likely from a management representation letter.

A management representation letter is a document issued by a company's management to its auditors, confirming certain facts and statements made in the financial statements. It serves as a representation of management's understanding and acknowledgment of their responsibility for the accuracy and completeness of the financial statements.

In this passage, the absence of communications from regulatory agencies about noncompliance or deficiencies in financial reporting practices indicates that there have been no issues identified that would materially affect the financial statements.