An Auditor Identified a Material Weakness in Internal Control in August.The

question 7

Multiple Choice

An auditor identified a material weakness in internal control in August.The client was informed and the client corrected the material weakness prior to year-end (December 31) ;the auditor agrees that the correction eliminated the material weakness prior to year-end.The appropriate audit report on internal control under PCAOB standards on reporting on internal control is:

• A)Adverse.
• B)Unqualified.
• C)Disclaimer.
• D)Qualified.

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Definitions:

Present Value

The value today of the stream of expected future annual income that a property generates.

Interest Rate

Interest paid divided by amount borrowed.

Economic Rent

The excess payment to a resource above what it is necessary to pay to secure its use.

Landlords

Individuals or entities who own property that is rented or leased to others, receiving rental income in return.