When Management's Assertion About the Effectiveness of a Nonissuer's Internal

question 323

Multiple Choice

When management's assertion about the effectiveness of a nonissuer's internal control is presented in a representation letter that will not accompany the CPA's report:

• A) Use of the report is restricted to management and the board of directors.
• B) The report should contain a statement of management's assertion.
• C) The CPA should not accept the engagement.
• D) The report should include a negative assurance with respect to the effectiveness of the entity's internal control.

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Definitions:

Great Arteries

The major arteries, such as the aorta and pulmonary artery, that carry blood away from the heart to the body or lungs.

Cardiac Cycle

The sequence of events in the heart from the beginning of one heartbeat to the beginning of the next, including systole (contraction) and diastole (relaxation).

Ventricles

Lower chambers of the heart that receive blood from the atria and pump it to the lungs and the rest of the body.

Great Arteries

Major arteries that carry blood away from the heart to various parts of the body, notably the aorta and the pulmonary arteries.