Which of the Following Representations Should Not Be Included in a Report

question 860

Multiple Choice

Which of the following representations should not be included in a report on internal control related matters noted in an audit of a nonissuer?

• A) Significant deficiencies related to internal control design exist, but none is deemed to be a material weakness.
• B) There are no significant deficiencies in the design or operation of internal control.
• C) Corrective follow-up action is recommended due to the relative significance of material weaknesses discovered during the audit.
• D) The auditor's consideration of internal control would not necessarily disclose all significant deficiencies that exist.

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Definitions:

Independent Scenarios

Situations or variables in an analysis that do not depend on or affect each other.

Beginning Merchandise Inventory

The value of a company's inventory of goods available for sale at the start of an accounting period.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and net income.