Prior to Issuing a Report on Internal Controls Over Financial

question 31

Multiple Choice

Prior to issuing a report on internal controls over financial reporting, an auditor is required to:

• A)perform procedures sufficient to identify all control deficiencies.
• B)communicate to management, in writing, all control deficiencies previously included in written communication from the internal auditors.
• C)communicate to management, in writing, all control deficiencies identified during the audit and inform the audit committee when such a communication has been made.
• D)represent that no significant deficiencies were noted during the audit of internal control.

---

Definitions:

Inelastic

Refers to a scenario in which the demand or supply for a product or service is relatively insensitive to price fluctuations.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a price change.

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply between two points on a curve by using the average of the initial and final quantities and prices.

Smoking Reduction

Efforts or strategies aimed at decreasing the prevalence of tobacco smoking among individuals or populations.