An Auditor May Be Asked to Report on the Client's

question 53

Multiple Choice

An auditor may be asked to report on the client's internal control structure. Which one of the following is NOT a reason why the auditor would be asked to prepare this?

• A) It is required by contractual obligation on the client.
• B) It is required by regulatory obligation on the client.
• C) It is required by statutory obligation on the client.
• D) It is part of the financial report audit.

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Definitions:

Secretary Of State

A high-ranking official in the government responsible for the foreign affairs in the federal government or various administrative duties within the state government.

Transferable Interest

is an interest in an entity, such as a partnership or limited liability company, that can be transferred or sold to another party.

Transferee

A person or entity that receives the transfer of property, rights, or privilege from another.

Court

A governmental institution with the authority to adjudicate legal disputes and administer justice in civil, criminal, and administrative matters.