A Report on a Nonissuer's Internal Control Should Include a Statement

question 376

Multiple Choice

A report on a nonissuer's internal control should include a statement limiting the use of the report when:

• A) Management's assertion is presented in a separate report that will accompany the CPA's report.
• B) Management's assertion is presented as a representation letter to the CPA.
• C) Management's assertion is presented based upon criteria that are available to specific parties.
• D) Management's assertion is not presented.

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Definitions:

Identifiable Elements

Refers to components within a system or environment that can be distinctly recognized and differentiated from one another.

Culture

A set of shared values, beliefs, customs, practices, and social behavior of a particular nation or people.

Unobservable Culture

The components that lie beneath the surface of an organization, such as company values and assumptions.

Company Values

Core principles and beliefs that guide an organization's actions and decision-making processes, reflecting its culture and ethics.