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:

Sad Film

A movie genre designed to induce emotional responses, specifically feelings of sadness, in its audience.

Set Point

A theory suggesting that the body regulates certain variables, such as body weight or temperature, at a particular set point or equilibrium, making it resist change from this point.

Isomorphic Incongruity

Isomorphic incongruity refers to a state of disparity or mismatch within structures that are otherwise identical in form or relation, often leading to confusion or perception issues.

Embarrassment

A feeling of self-consciousness, shame, or awkwardness often triggered by realizing a social mistake.