A Deficiency Uncovered in the Audit of Internal Control Is

question 45

Multiple Choice

A deficiency uncovered in the audit of internal control is explained by which of the following in relation to a financial statement misstatement?

• A) the amount of the misstatement
• B) the likelihood of the misstatement
• C) the amount, likelihood, and classification of the misstatement
• D) the amount and the classification of the misstatement

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Definitions:

Actual Authority

The express and implied powers a principal intentionally grants to an agent, allowing them to act on the principal's behalf.

Duty of Loyalty

A legal obligation of individuals, such as directors of a company or trustees, to act in the best interests of the company or trust, over and above their own interests.

Personal Concerns

Matters or issues that are primarily related to an individual's private interests, well-being, or personal circumstances.

Agent

A person or entity legally authorized to act on behalf of another person or entity in financial or business matters.