Which of the Following Factors Is Not Relevant When Assessing

question 33

Multiple Choice

Which of the following factors is not relevant when assessing identified internal control deficiencies?

• A) Weaknesses in the control environment.
• B) The absence of a material misstatement in the financial statements.
• C) Volume of transactions affected by the deficiency.
• D) Effectiveness of oversight/governance.

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, impacting international trade and economics.

Freely Fluctuating Exchange Rates

Exchange rates that are determined by the open market forces of supply and demand without direct government intervention.

Currency Appreciation

An increase in the value of one currency relative to other currencies in the foreign exchange market.

Balance of Payments

A financial statement that summarizes an economy's transactions with the rest of the world for a specific period.