What Level of Assurance Does the Reader of a Private

question 26

Multiple Choice

What level of assurance does the reader of a private company financial statement receive on the company's system of internal controls?

• A) positive assurance
• B) reasonable assurance
• C) negative assurance
• D) no assurance
• E) limited assurance

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Definitions:

Assertiveness

An individual’s capacity to make requests, actively disagree, express positive and negative personal feelings, and stand up for himself or herself without attacking another.

Amiable

A social style characterized by high responsiveness and low assertiveness. People with this style are considered relationship specialists; they enjoy working in supportive and helpful roles.

Effectiveness

The degree to which something is successful in producing a desired result or outcome.

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.