An Accountant's Report Expressing an Opinion on an Entity's Internal

question 38

Multiple Choice

An accountant's report expressing an opinion on an entity's internal control should:

• A) include an opinion concerning management's assertions about whether the cost of correcting any material weaknesses or deficiency would exceed the benefits of reducing the risk of errors and irregularities.
• B) briefly explain the broad objectives and inherent limitations of internal control.
• C) state that the study and evaluation of internal control was conducted in accordance with generally accepted auditing standards.
• D) clearly disclaim responsibility for the establishment and maintenance of internal control.

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Definitions:

Increase

A rise or growth in quantity, size, intensity, or another measure, often in reference to numerical or measurable factors.

Growth Rate

Growth rate refers to the rate at which the size of an organism or population increases over a given period of time.

Hierarchical Organization

The arrangement of entities or elements in a rank or order, often seen in biological systems and social structures.

Ecology

A discipline of biology that studies the interrelations among living things and their environments.