Deficiencies in Internal Control Identified by the Auditor That Are

question 40

Multiple Choice

Deficiencies in internal control identified by the auditor that are lesser than significant deficiencies:

• A) Must be communicated to the board of directors, the audit committee, and management.
• B) Must be reported to the audit committee and management.
• C) Must be communicated to management, with the audit committee only informed of the communication to management.
• D) Need not be disclosed unless they in aggregate equal (at least) a significant deficiency.

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Definitions:

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a good or service.

Average Variable Cost

The per-unit variable cost, found by dividing the total variable expenses by the amount of output generated.

Marginal Cost

The cost of producing one additional unit of a good or service, which is used in decision-making about output levels.

Marginal Cost

Marginal Cost is the cost incurred by producing one additional unit of a product or service.