Which of the Following Statements Is Correct Concerning the Auditor's

question 96

Multiple Choice

Which of the following statements is correct concerning the auditor's opinion on internal control effectiveness?

• A) The report describes any material weaknesses and discusses actions taken by management to remediate the problems.
• B) The report does not discuss whether the control weaknesses were first identified by management or the auditor.
• C) The report does not recognize the integrated nature of the audit and the affect of the material weakness on the planning of the financial statement audit.
• D) The report identifies management's actions to remedy the prior year's control weaknesses.

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Definitions:

Personal Control

An individual's belief in their capability to exert influence over and shape their own life events and environment.

User Behavior

The actions and patterns of behavior demonstrated by users when interacting with a product, service, or system.

Tragedy of the Commons

A situation in which individual users deplete or spoil shared resources due to collective overuse, undermining the common good.

Resource System

An organized set of resources and procedures meant to support a particular activity or process.