Which of the Following Conditions Is Necessary for a Practitioner

question 585

Multiple Choice

Which of the following conditions is necessary for a practitioner to accept an attest engagement to examine and report on a nonissuer's internal control over financial reporting?

• A) The practitioner anticipates relying on the entity's internal control in a financial statement audit.
• B) Management presents its written assertion about the effectiveness of internal control.
• C) The practitioner is a continuing auditor who previously has audited the entity's financial statements.
• D) Management agrees not to present the practitioner's report in a general-use document to stockholders.

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Definitions:

Total Revenue

The total income received by a firm from the sale of its products or services before any expenses are subtracted.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type.

Cross Elasticity

A measure of the responsiveness of demand for one product in relation to a price change in another, highlighting substitute or complementary relationships between products.

Demand

The desire to own anything, coupled with the power to obtain it.