Management letters to clients What is a management letter and how does it differ from a management representation letter?
The management letter is a letter from the auditor to the client about the auditor's observations of management weaknesses. The management letter is not required. Its purpose is to provide useful advice and information to the client so as to improve their operations. Many of the observations likely will relate directly to control deficiencies or operational matters.
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Answer the following statements true (T) or false (F)
1. The first step of the OD process is evaluation, which uses employee surveys, interviews, and observation to ascertain attitudes and problem areas. 2. In the OD process, feedback is used to refine the diagnosis. 3. Intervention is the treatment phase of OD in which problems are corrected. 4. Hard data about absenteeism, turnover, and profitability are used in the intervention stage of the OD process.
Barnes and Noble lost its market share in book retailing to Amazon. It tried to regain market share by offering a similar electronic reader, the Nook, to the Amazon Kindle series. This demonstrates that Barnes and Noble lacked
A. a company-wide strategy. B. a sustainable competitive advantage. C. good suppliers. D. a short-term strategy.
Section 806 of the Sarbanes-Oxley Act ________
A) protects federal whistleblowers who report agency misconduct B) limits the securities activities of commercial banks and affiliations between commercial banks and securities firms C) imposes liability on persons and companies who defraud governmental programs D) prohibits any publicly traded company from discriminating against an employee who provides information to the government regarding violation of the securities laws
Which of the following is a function of the European Commission?
A. It acts as the principal initiator of overall policy for the EU. B. It drafts legislation for submission to the Council and the Parliament. C. It determines the EU's annual budget in conjunction with the Council of the EU. D. It coordinates the economic policies of the member states.