In Some Cases, Management Can Correct Deficiencies and Material Weaknesses

question 60

True/False

In some cases, management can correct deficiencies and material weaknesses before the auditor does significant testing, which may permit a reduction in control risk.

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Definitions:

Restitution

The act of compensating for loss, damage, or injury caused; involves returning to the original state or compensating for loss.

Breach Of Contract

Neglecting to comply with any aspect of a contract, documented or verbal, without a lawful excuse.

Rescission

The legal act of cancelling or terminating a contract, returning the parties, as much as possible, to their positions prior to entering the agreement.

Rebuilt Transmission

A vehicle transmission that has been disassembled, inspected, repaired, and reassembled with new or refurbished components to meet original specifications.