If the Auditor Determines That Management's Annual Report on Internal

question 27

True/False

If the auditor determines that management's annual report on internal controls is incomplete or not properly presented,the auditor's report will include an explanatory paragraph that describes the reasons for this determination.

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Definitions:

Form 8-K

A report filed by publicly traded companies to announce major events that shareholders should know about, including acquisitions, disposals, and changes in control.

Significant Events

Major occurrences that have a profound effect on a company's operations and financial statements, such as mergers, acquisitions, or natural disasters.

Securities Accounting Standards (SASs)

A set of guidelines and rules for the accounting and reporting of transactions involving securities.

Accounting Principles

The rules and guidelines that companies must follow when reporting financial data.