Evidence of Fraud, Whether or Not Material, on the Part

question 7

True/False

Evidence of fraud, whether or not material, on the part of senior management, would likely cause the auditor to conclude that the client had a material weakness in internal control over financial reporting.

---

Definitions:

Monthly Schedule Depositor

A designation for businesses that determines how frequently they must deposit employment taxes to the IRS based on their payroll size.

Semiweekly Schedule Depositor

A designation for businesses that must deposit payroll taxes on a semiweekly basis, determined by the amount of their tax liability.

Payroll Tax Liability

The obligation of employers to withhold and pay taxes on behalf of their employees, such as social security and Medicare taxes.

Authorized Depository

A financial institution authorized to accept deposits from individuals and businesses.