PCAOB Auditing Standard No

question 41

Multiple Choice

PCAOB Auditing Standard No.4 requires that the external auditors should take each of the following steps when reporting on whether a material weakness still exists in the internal controls except for:

• A) Evaluate whether management has accepted responsibility for the effectiveness of internal control
• B) Evaluate whether management asserts whether the controls are effective in correcting the material weakness
• C) Evaluate whether management has obtained sufficient evidence to support its assessment
• D) Evaluate whether management has conducted an audit of internal controls

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Definitions:

Utility Function

A mathematical representation in economics that assigns a value to each possible choice or bundle of goods to reflect the satisfaction or happiness a consumer derives from it.

Consumption

The application of goods and services by domestic units.

Interest Rate

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on investment.

Income

Earnings received by an individual or entity, typically through wages, investments, or business activities, over a certain period.