When Completing the Audit of Internal Controls for an Issuer,the

question 47

Multiple Choice

When completing the audit of internal controls for an issuer,the severity of an internal control deficiency depends on:

• A) Whether there is a reasonable possibility that the company's controls will fail to prevent or detect a misstatement of an account balance or disclosure.
• B) Whether the account has a history of errors.
• C) The magnitude of the potential misstatement resulting from the deficiency or the deficiencies.
• D) Both A and C are correct.
• E) All of the above are correct.

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Definitions:

Quid Pro Quo

A Latin phrase meaning "something for something," which refers to a mutual agreement where a service or good is exchanged for another service or good of equivalent value.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature in a workplace, or academic environment.

Promotion

The act of raising someone to a higher position or rank within an organization.

Harassment

Aggressive pressure or intimidation, often manifesting in unwanted and oppressive behavior towards an individual or group.