Prior to issuing a report on internal controls over financial reporting, an auditor is required to:
A. perform procedures sufficient to identify all control deficiencies.
B. represent that no significant deficiencies were noted during the audit of internal control.
C. communicate to management, in writing, all control deficiencies previously included in written communication from the internal auditors.
D. communicate to management, in writing, all control deficiencies identified during the audit and inform the audit committee when such a communication has been made.
Answer: D
You might also like to view...
When Jason watches the news, he filters what he hears to suit his own needs, biases, and expectations. Which of the following is Jason using?
a. selective memory b. selective exposure c. selective attention d. selective perception
What are semantics? How might misunderstandings arise in semantics?
What will be an ideal response?
The state of Ohio has passed a law requiring that every automobile be inspected at least once a year for pollution control. Anson Enterprises is considering entering into this type of business. After extensive studies, Mark Anson has developed the following set of projected annual data on which to make his decision: Direct service labor $363,000.00 Variable service overhead costs 270,000.00 Fixed
service overhead costs 280,000.00 Marketing expenses 120,000.00 General and administrative expenses 170,000.00 Minimum profit 90,000.00 Cost of assets employed 500,000.00 Anson believes that his company will inspect 100,000 automobiles per year. The company earns an average of 18.75 percent return on its assets. The projected cost for inspecting each automobile would be A) $11.13. B) $12.03. C) $12.93. D) $10.03.
Explain which of the following would usually be used in a computerized accounting system and why. 1. Special journals 2. Accounts receivable control accounts 3. Electronic invoice form 4. Month-end postings to the general ledger