The Existence of a Material Weakness Led to an Adverse

question 2

Multiple Choice

The existence of a material weakness led to an adverse opinion in the internal control audit report of a publicly traded company.Which of the following statements is correct if management believes that it has remediated the weakness?

• A)Management may engage the auditors to report on whether the material weakness continues to exist prior to its next annual audit.
• B)Management is required to engage the auditors to report on whether the material weakness continues to exist prior to its next annual audit.
• C)Management may not engage the auditors to report on whether the material weakness continues to exist prior to its next annual audit.
• D)Management may engage the auditors to modify the prior adverse audit report be modified to an unqualified report.

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Definitions:

Spreadsheet Function

A pre-defined calculation in spreadsheet software that performs operations on data and returns a result.

System Software

The foundational software that controls the hardware of a computer and provides a platform for running application software.

Spreadsheet Formula

A set of instructions used in spreadsheet software that performs calculations or other actions on data.

Spreadsheet Software

An application program such as Microsoft Excel or Lotus 1-2-3 that enables a user to do calculations and numerical analyses easily.