1. Auditing standards require the auditor to obtain a signed letter from management comprising management's most important oral representations made during the audit. What is this letter called? Letter of Representation Letter of Confirmation Letter of Engagement 2. Which one of the following statements is correct? : A contingent liability is a definite future obligation to an outside party for an unknown amount resulting from activities that have already taken place. A contingent liability is a potential future obligation to an outside party for a known amount resulting from activities that must still take place. A contingent liability is a potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place.