Assume that an auditor is focusing on two weaknesses in internal control. Although neither is by itself a material weakness, the two significant deficiencies in combination represent a material weakness. The client effectively remediates one of them prior to year-end but does not have time to remediate the other prior to year-end. What type of audit report on internal control is appropriate?
A. Unqualified.
B. Adverse.
C. Qualified.
D. Unqualified with explanatory language.
Answer: A
You might also like to view...
Which internal control procedure is followed when storage areas are secured with limited access?
a. Segregation duties b. Safeguarding assets and records c. Independent verifications d. Proper authorizations
In terms of ethnic and racial makeup, why is the United States today more accurately characterized as a "salad bowl" than a "melting pot"?
What will be an ideal response?
What is the term used to refer to working in a startup for no money in return for equity participation in the venture?
a. Equity investment b. Debt investment c. Startup investment d. Sweat equity investment
A portfolio manager is trying to balance investments between bonds, stocks and cash. The return on stocks is 12 percent, 9 percent on bonds, and 3 percent on cash
The total portfolio is $1 billion, and he or she must keep 10 percent in cash in accordance with company policy. The fund's prospectus promises that stocks cannot exceed 75 percent of the portfolio, and the ratio of stocks to bonds must equal two. Formulate this investment decision as a linear programming problem, defining fully your decision variables and then giving the objective function and constraints.