Which of the Following Situations Would Justify the Removal of a Finding

question 178

Multiple Choice

Which of the following situations would justify the removal of a finding from the final audit report?

• A) Management disagrees with the report findings and conclusions in their responses.
• B) Management has already satisfactorily completed the recommended corrective action.
• C) Management has provided additional information that contradicts the findings.
• D) Management believes that the finding is insignificant and unfairly included in the report.

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Definitions:

Accrued

Expenses or revenues that have been incurred but not yet recorded in the company's accounts during the accounting period.

Pro-Rated Basis

The allocation of amounts or costs in proportion to some factor, such as time or usage.

Special Purpose Government

A form of government created for a specific, targeted purpose or project, often with a narrow scope of responsibilities compared to general-purpose local governments.

Legally Independent

A condition where an organization or individual functions autonomously, having distinct legal rights and obligations, without being controlled by or accountable to another entity.