When Performing a Review of a Nonpublic Company,the Auditors Must

question 5

Multiple Choice

When performing a review of a nonpublic company,the auditors must obtain in a representation letter acknowledgement of management for its responsibility for each of the following except:

• A)Responsibility for identifying illegal acts committed by employees.
• B)Responsibility for the financial statements conforming with generally accepted accounting principles.
• C)Responsibility to prevent and detect fraud.
• D)Knowledge of any actual or suspected fraud that is material.

---

Definitions:

Passive Sentence

A sentence construction where the subject of the sentence is acted upon by the verb, often obscuring who is performing the action.

Complex Sentence

A sentence that contains an independent clause and at least one dependent clause, conveying more detailed or nuanced information.

Compound-Complex Sentence

A sentence that combines at least one dependent clause with two or more independent clauses.

Independent Clause

A group of words that contains a subject and a verb and expresses a complete thought, functioning as a sentence or part of a sentence.