When Engaged to Express an Opinion on a Nonissuer's Internal

question 551

Multiple Choice

When engaged to express an opinion on a nonissuer's internal control, an accountant should:

• A) Obtain management's written assertions regarding whether the company has maintained effective internal control.
• B) Qualify any opinion concerning management's assertion that the cost of correcting any weaknesses exceeds the benefits.
• C) Keep informed of events subsequent to the date of the report that might have affected the accountant's opinion.
• D) Disclaim an opinion on whether the system taken as a whole is sufficient to prevent or detect material errors or irregularities.

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Definitions:

Time Orientation

The degree to which a society emphasizes short-term or long-term goals.

Hofstede's Framework

A model that identifies and analyzes six dimensions of national culture that affect people's work-related values and behavior.

Weak Labour Laws

A situation where labor laws are insufficient to protect the rights of workers, often leading to exploitation or unsafe working conditions.

Global Management

The management of business and organizations with interests in more than one country.