The Auditor Must Communicate

question 90

Multiple Choice

The auditor must communicate:

• A)only material weaknesses in internal control to those charged with governance.
• B)both significant deficiencies and material weaknesses in internal control to those charged with governance.
• C)any significant deficiencies in internal control to those charged with governance using a management letter.
• D)issues regarding internal control to those charged with governance in writing within 90 days following the audit report release.

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Definitions:

Large Denomination CDs

Certificates of Deposit (CDs) with high minimum deposit requirements, often offering higher interest rates in exchange for larger initial investments.

M3

A measure of the money supply that includes M2 (cash, checking deposits, and easily convertible near money) plus large time deposits, institutional money market funds, and other larger liquid assets.

Small Denomination CDs

Certificates of Deposit that are available in lower monetary values, offering a way for individual investors to earn interest on their savings.

Paper Money

Currency in the form of banknotes issued by a government or central bank.