When the Auditor Identifies Significant Deficiencies in the Design or Operation

question 38

Multiple Choice

When the auditor identifies significant deficiencies in the design or operation of internal controls, it will be communicated to client's audit committee in the:

• A) audit report.
• B) reportable conditions letter.
• C) management letter.
• D) engagement letter.

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Definitions:

Self-determination Theory

A psychological framework suggesting people are motivated to grow and change by three innate and universal needs: competence, autonomy, and relatedness.

Particular Needs

Specific requirements or necessities that individuals or groups have, which can vary greatly depending on personal circumstances, preferences, or conditions.

Belongingness Needs

are a person's inherent need to feel connected, valued, and a part of a group or social circle, reflecting a fundamental human motivation.

ERG Theory

ERG Theory is a motivation theory developed by Clayton Alderfer that categorizes human needs into three types: Existence, Relatedness, and Growth, suggesting that these needs can influence workplace behavior.