If an Audit Firm Accepts or Continues to Provide Audits

question 47

True/False

If an audit firm accepts or continues to provide audits to a client firm with ineffective internal controls over financial reporting, the management representation letter will note that an adverse opinion will likely be issued.

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Definitions:

Acceptance Signals

Signs that your buyer is favorably inclined toward you and your presentation.

Favorably Inclined

Having a positive attitude or disposition towards something or someone.

Intimate Space

A spatial zone up to two feet, about an arm’s length, from a person’s body that is reserved for close friends and loved ones.

Endearing

Having qualities that make someone or something lovable or attract positive feelings.