The Auditor Must Communicate

question 90

Multiple Choice

The auditor must communicate:

• A)only material weaknesses in internal control to those charged with governance.
• B)both significant deficiencies and material weaknesses in internal control to those charged with governance.
• C)any significant deficiencies in internal control to those charged with governance using a management letter.
• D)issues regarding internal control to those charged with governance in writing within 90 days following the audit report release.

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Definitions:

Extraction

The process of removing raw materials from the earth, which are then used in the production of goods and services.

Profit Per Pound

The amount of profit generated for each pound of product sold, used in evaluating the efficiency of production and sales.

Coal Reserve

Accumulations of coal resources that have been discovered, confirmed by geological surveys, and are considered economically extractable using current technology.

Renewable Resource

A natural resource that can replenish itself over time through natural processes or through human intervention.