Auditors Must Communicate Internal Control "Significant Deficiencies" To

question 70

Multiple Choice

Auditors must communicate internal control "significant deficiencies" to:

• A)The audit committee.
• B)The shareholders.
• C)The SEC.
• D)The Federal Trade Commission.

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Definitions:

Par Value

Par value is the nominal or face value of a stock or bond as stated by the issuer, which might not reflect its market value.

Shares

Units of ownership interest in a corporation or financial asset, which provide dividends and voting rights to the shareholder.

Preferred Stock

A category of corporate ownership that ranks above common stock in both asset claims and earnings, typically accompanied by set dividend payments.

Par Value

A nominal or face value assigned to a share of stock by the company's charter, which has little bearing on its market value.