The Auditor Is Responsible for Communicating Significant Internal Control Deficiencies

question 123

Multiple Choice

The auditor is responsible for communicating significant internal control deficiencies to the audit committee, or those charged with governance. This communication

• A) may be oral or written.
• B) must be oral.
• C) must be written.
• D) must be oral via direct communication.

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Definitions:

Elasticity of Labor Supply

A measure of the response of labor supplied to a change in the price of labor.

Wages

Payments made to employees by employers, typically based on the number of hours worked or a fixed amount for a certain job.

Quantity of Labor

The total hours worked or the number of employees engaged in production within a certain period.

Unit Elastic

A situation where a change in price leads to an equal proportional change in the quantity demanded or supplied.