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:

Physical Properties

Characteristics of a material or substance that can be observed or measured without changing its identity, such as density, color, or melting point.

Eidetic Memory

Eidetic memory is the ability to recall images, sounds, or objects in memory with high precision for a short period after only seeing them once without using mnemonic devices.

Cueing

The process of prompting or signaling to elicit a specific response or action; often used in memory recall and learning strategies.

Short-Term Memory

The part of memory where small amounts of information can be kept for a short period of time, typically several seconds to a minute.