While There Is No Professional Requirement to Do So on Audit

question 140

Multiple Choice

While there is no professional requirement to do so on audit engagements, CPAs frequently issue a formal "management" letter to clients. The primary purpose of this letter is to provide

• A) evidence indicating whether the auditor is reasonably certain that internal accounting control is operating as prescribed.
• B) a permanent record of the internal accounting control work performed by the auditor during the course of the engagement.
• C) the client with the CPA's recommendations for improving any part of the client's business.
• D) a summary of the auditor's observations that resulted from the auditor's special study of internal control.

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Definitions:

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, or praise, in contrast to intrinsic motivation, which is driven by personal satisfaction or interest.

Extrinsic Motivation

Encouragement stemming from external factors including wealth, recognition, scores, and compliments.

Intrinsic Motivation

The drive to perform an activity for its inherent satisfaction or pleasure, rather than for some separable consequence.

Organismic Needs

Fundamental human needs identified in various psychological theories that are innate and drive behavior, such as physiological, safety, love, and esteem needs.