Which statement about management representations is true?

• A. Management representations are dated as of the balance sheet date.
• B. Management representations may serve as a substitute to various types of substantive procedures.
• C. Management representations are signed by the auditor and delivered to the client's officers.
• D. Management representations are used to corroborate information obtained during the audit.

Answer: (D)

Management representations provide written confirmation from management that supports and corroborates the evidence the auditor has gathered. They are signed by those responsible for the financial statements and delivered to the auditor, dated as of the auditor’s report date, and they address matters like the accuracy and completeness of the financial statements, disclosures, and compliance with applicable laws. This letter helps the auditor corroborate information obtained during the audit and, while useful, does not replace substantive procedures or testing. It is not signed by the auditor. For these reasons, the statement that management representations are used to corroborate information obtained during the audit is true.