Which of the Following Is Not a Condition That Must

question 68

Multiple Choice

Which of the following is not a condition that must be met for an internal control examination?

• A) Management accepts responsibility for the effectiveness of its internal control.
• B) Management must base its evaluation of internal control on standards established by the AICPA.
• C) Management's evaluation of control can be supported by sufficient evidence.
• D) Management presents a written assertion about the effectiveness of its internal control.

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Definitions:

General Agreement on Tariffs and Trade

An international treaty created to reduce trade barriers and promote international commerce through the reduction of tariffs and quotas.

Free Trade

Cross-border commerce without the imposition of tariffs, quotas, or any restrictions, allowed to unfold naturally.

Trade Restrictions

Measures implemented by governments to control the flow of goods and services across borders, which may include tariffs, quotas, and embargoes.

Domestic Producers

Domestic producers are companies that manufacture goods or provide services within their own country, often competing with imported products.