AICPA Exam CPA-Auditing Topic 3 Question 111 Discussion

Choice 'd' is correct. The content of the representation letter will generally not affect the nature and extent of audit documentation. Factors affecting the nature and extent of audit documentation include:

1. The risk of material misstatement;

2. The extent to which judgment was required in performing the work and evaluating the results;

3. The nature of the specific auditing procedure;

4. The significance of the evidence obtained;

5. The nature and extent of any problems identified; and

6. The need to document conclusions that may not be obvious.