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:

Employee Turnover

The rate at which employees leave a company and are replaced by new employees.

Work Goals

The objectives or targets that an individual or team aims to achieve in their professional setting.

Objective Measurement

The process of quantifying phenomena in a manner that is not influenced by personal feelings, interpretations, or prejudice.

High Power Distance

A cultural dimension that reflects the extent to which less powerful members of organizations and institutions accept and expect power to be distributed unequally.