B is corrent because related-party transactions are so limited by the professional standards. That standard’s approach is that, unless stated otherwise, representations may be limited to those that are considered material to the financial statements.
A is incorrent,This answer represents an exception to the general rule in that all information about fraud involving members of management, all financial records, and all director meeting minutes must be made available. There are also no limitations on (1) management’s acknowledgement of its representation for financial statement fair presentation, (2) availability of stockholder and committees of the board of directors meetings, and (3) communications from regulatory agencies concerning noncompliance.
C is incorrent,This answer represents an exception to the general rule in that all information about fraud involving members of management, all financial records, and all director meeting minutes must be made available. There are also no limitations on (1) management’s acknowledgement of its representation for financial statement fair presentation, (2) availability of stockholder and committees of the board of directors meetings, and (3) communications from regulatory agencies concerning noncompliance.
D is incorrent,This answer represents an exception to the general rule in that all information about fraud involving members of management, all financial records, and all director meeting minutes must be made available. There are also no limitations on (1) management’s acknowledgement of its representation for financial statement fair presentation, (2) availability of stockholder and committees of the board of directors meetings, and (3) communications from regulatory agencies concerning noncompliance.
