While There Is No Professional Requirement to Do So on Audit

question 43

Multiple Choice

While there is no professional requirement to do so on audit engagements, CPAs frequently issue a formal "management" letter to clients.The primary purpose of this letter is to provide:

• A)evidence indicating whether the auditor is reasonably certain that internal accounting control is operating as prescribed.
• B)a permanent record of the internal accounting control work performed by the auditor during the course of the engagement.
• C)a written record of discussions between auditor and client concerning the auditor's observations and suggestions for improvements.
• D)a summary of the auditor's observations that resulted from the auditor's special study of internal control.

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Definitions:

Centralized State Power

A form of governance where political authority and decision-making are concentrated in a central government or leadership, often at the expense of local autonomy.

China

A country in East Asia, the world's most populous nation, with a long history, rich culture, and significant global economic and political influence.

Civil Society

The realm of organized social life that is voluntary, self-generating, (largely) self-supporting, autonomous from the state, and bound by a legal order or set of shared rules.

Mass Media

Various forms of communication, including newspapers, television, and the internet, that reach large audiences simultaneously.