An Accountant's Report Expressing an Opinion on an Entity's Internal

question 3

Multiple Choice

An accountant's report expressing an opinion on an entity's internal control should:

• A) clearly disclaim responsibility for the establishment and maintenance of internal control.
• B) state that the study and evaluation of internal control was conducted in accordance with generally accepted auditing standards.
• C) include an opinion concerning management's assertions about whether the cost of correcting any material weaknesses or deficiency would exceed the benefits of reducing the risk of errors and irregularities.
• D) briefly explain the broad objectives and inherent limitations of internal control.

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Definitions:

Upper Quartile

The value below which 75% of the data points in a dataset fall, also known as the third quartile.

Percentile

A measure that indicates the value below which a given percentage of observations in a group of observations falls.

Five-number Summary

Consists of the minimum, first quartile, median, third quartile, and maximum, providing a quick overview of the distribution of a dataset.

Distribution

The way in which values in a dataset are spread out or distributed across a range of values or categories.