Which of the Following Best Describes an Engagement to Report

question 49

Multiple Choice

Which of the following best describes an engagement to report on an entity's internal control over financial reporting for a nonpublic company?

• A)An attestation engagement to examine and report on management's written assertions about the effectiveness of its internal control structure
• B)An audit engagement to render an opinion on the entity's internal control structure
• C)A prospective engagement to project,for a period of time not to exceed one year,and report on the expected benefits of the entity's internal control structure
• D)A consulting engagement to provide constructive advice to the entity on its internal control structure

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Definitions:

Unilateral Contract

A type of contract where one party makes a promise in exchange for an act by the other party, becoming binding once the act is completed.

Bilateral Contract

A contractual agreement involving two parties where each promises to perform an act in exchange for the other's act.

Past Consideration

Refers to an act or benefit given in the past that cannot be legally considered as an inducement for a contract.

Illusory Promise

A statement that appears to be a promise but is too vague or lacks the requisite commitment to be legally enforceable as a contract.