When Determining What Type of Report to Issue on Internal

question 1

Multiple Choice

When determining what type of report to issue on internal control under Section 404,

• A) an adverse opinion on internal control must be given if any weaknesses in a key internal control is discovered.
• B) a scope limitation requires the auditor to disclaim an opinion on internal controls.
• C) if the auditor gives a qualified opinion on the financial statements, they must give a qualified opinion on internal controls.
• D) a scope limitation requires the auditor to express a qualified opinion or a disclaimer of opinion on internal controls.

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Definitions:

Third Variable Problem

A term in research indicating that the association between two variables might be influenced by an unmeasured third variable.

Third Variable

A variable that is not directly involved in the hypothesis being tested but can influence the relationship between the independent and dependent variables.

Action Potential

The neural impulse that travels along the axon and then causes the release of neurotransmitters into the synapse.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body.