When Performing a Review of a Nonpublic Company,the Auditors Must

question 16

Multiple Choice

When performing a review of a nonpublic company,the auditors must obtain in a representation letter acknowledgement of management for its responsibility for reach of the following except:

• A)Responsibility for identifying illegal acts committed by employees.
• B)Responsibility for the financial statements conforming with generally accepted accounting principles.
• C)Responsibility to prevent and detect fraud.
• D)Knowledge of any actual or suspected fraud that is material.

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Definitions:

Majority

More than half of a total number or quantity; often used in the context of votes, opinions, or demographics.

Independent

A term in statistics and research denoting a variable that is manipulated or controlled in an experiment to observe its effect on the dependent variable.

Weekly Income

The total amount of money earned or received by an individual or entity in one week.

Standard Deviation

An indicator of the spread or dissimilarity among a group of numbers, showing the extent to which these numbers vary from the average.