Discuss the difference between the Management Letter and the Legal Representation Letter

Q: Explain how materiality affectsaudit reporting decisions.

A: American Institute of Certified Public Accountants (AICPA): AICPA is the organization which supports…

Q: Explain principal (agency relationships)

A: Answer: Agent: An agent is one who provides work on principal’s behalf.  Principal approves agent to…

Q: When does an agency relationship happen

A: Agent Relationship : The official stipulations of a specific principal-agent relationship are…

Q: The understanding with the client

A: A good auditor is one who maintains a good understanding of his clients. An auditor should keep his…

Q: what are the objectives of the client representation letter?

A: Client representation letter refers to the vital evidence piece in audit and the representation as…

Q: What is a management comments letter and what is the significance of this letter

A: A management letter is a letter which is prepared by an auditor that discusses the findings and…

Q: Define agency conflict

A: Agency conflict denotes to the conflicts that arise between the agent and Principal. In the finance…

Q: When does an agency problem happen?

A: Agency problem is the probelm of difference in opinion of management and the shareholders.

Q: on based

A: There are three main models of the judicial decision-making that explain how judges come to a…

Q: What is an agency order?

A: Solution- Agency order An order to buy or sell that a broker executes with another investor. The…

Q: How are management’s actions incorporated in EVA and MVA? How are EVA and MVAinterconnected?

A: Economic added value (EVA) is a measured cash-deductible reduction of capital costs of a firm's…

Q: ways on how to avoid conflict of interest in an organization.

A: Conflict of interest in an organization arises when the management and the employees do no share…

Q: What are potiental constaints/Risks when dealing in Tri Party Account Reconciliation and Process…

A: Tri Party Account Tri Party Account which is deal with the platform to outsource to the collateral…

Q: Understanding internal control, components, procedures, and laws Match the following terms with…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: What standards govern Review engagements?

A: Audit means independent examination of books of accounts or financial information  so so as to…

Q: Define the management assertions of existence or occurrence, completeness, rights and obligations,…

A: Management assertion is the declaration by the management about the content of the financial…

Q: Describe a strategic-based responsibility accounting system. How does it differ fromactivity-based…

A: Responsibility accounting is a means of evaluating the performance of various divisions within an…

Q: Define agency cost or problem

A: Agency problem is that problem which is a conflict of interest in a relationship where one side…

Q: Draw the sketch of the management Accounting control system. What type of considerations are…

A: The administrative devices that firms use to control their managers and staff are referred to as…

Q: WHAT ARE SOME EXAMPLES OF POLICY CREDITS AND ADMINISTRATIVE GUIDANCE

A: Policy credits: The credit limit portion specifies the maximum amount of credit that consumers will…

Q: Which of the following management assertions is not associated with classes of transactions and…

A: Rights and obligations represent that the company has the right to use the assets and obligation to…

Q: How can agency problems be resolved.

A: A principal is one who hires an agent to perform some of his duties. Hence, it is the responsibility…

Q: What procedures are required for Review engagements?

A: Review engagement: It is a type of engagement that is only meant to provide whether the financial…