Deficiencies in Internal Control Identified by the Auditor That Are

question 24

Multiple Choice

Deficiencies in internal control identified by the auditor that are lesser than significant deficiencies:

• A)Must be communicated to the board of directors,the audit committee,and management.
• B)Must be reported to the audit committee and management.
• C)Must be communicated to management,and the audit committee need only be informed of the communication to management.
• D)Need not be disclosed unless they in aggregate equal (at least)a significant deficiency.

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Definitions:

Division of Labor

The distribution of various segments of a production activity or job among different individuals to enhance productivity.

Social Glue

Metaphorical substance that holds and integrates a society or community together by shared values, beliefs, or interests.

Organizational Culture

The collection of values, expectations, and practices that guide and inform the actions of all team members in an organization.

Actual Behavior

Actual behavior represents the actions or conduct of individuals in real-world situations, as opposed to their intentions or beliefs.