Which of the Following Is Most Correct for Audits of Non-Public

question 11

Multiple Choice

Which of the following is most correct for audits of non-public companies?

• A) An audit of internal control is required.
• B) An audit of internal control is not required.
• C) An audit of the design of internal controls is required.
• D) An audit of the operational effectiveness of internal controls is required.

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Definitions:

Misused Assets

Resources or assets that are not being utilized in an optimal or intended manner, leading to inefficiencies or loss within an organization.

Merchandise Credits

A form of store credit issued to a customer, typically from a returned item, for future purchases at that retailer.

Actionable Misrepresentation

False or misleading statements that lead to a legal cause of action because they result in harm or losses.

Sales Puffery

Exaggerated or hyperbolic statements made by a salesperson, regarded as harmless and not legally binding, used to spark interest in a product or service.