PQR Ltd. engages M & Co., which is not its statutory auditor, to review its financial statements under SRE 2400 (Revised).

Under applicable law, PQR Ltd. is required to make a written public statement regarding management’s responsibility for the preparation of its financial statements and the provision of relevant information and access to information.

PQR Ltd. has made such a written public statement, and M & Co. determines that the statement covers the relevant responsibility required under SRE 2400.

However, when M & Co. asks management to provide the corresponding written representation, management states orally:

“You have already been given access to all relevant information, so the written representation serves no additional purpose.”

Which ONE of the following is most appropriate?

A. Management is correct because once a written public statement has been made, the practitioner is prohibited from requesting any corresponding written representation from management.

B. Management is correct in not repeating in the written representation the responsibility already covered by the legally required public statement; however, its oral explanation that access to information by itself eliminates the need for written representations is not the appropriate basis for the conclusion.

C. Management is incorrect because every representation required under SRE 2400 must necessarily be reproduced in the written representation even where the same responsibility is covered by a written public statement required by law.

D. Management is correct only if the practitioner is satisfied that the public statement is sufficiently detailed to replace all written representations required under SRE 2400, including representations relating to related parties, fraud, non-compliance, going concern and subsequent events.