For Each Significant Internal Control Deficiency Identified by the Auditor

question 114

True/False

For each significant internal control deficiency identified by the auditor, he or she should design one or more tests of controls to assess the extent of the deficiency and its effect on the financial statements.

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders’ equity at a specific point in time.

Liabilities

Financial obligations or debts a company owes to external parties or entities.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, financial activities, and investment activities.

Balance Sheet

A financial statement that represents a company's assets, liabilities, and shareholders' equity at a specific point in time.