If the Auditors' Assessment of the Design of Internal Control

question 50

True/False

If the auditors' assessment of the design of internal control reveals that it cannot be relied upon,the auditors are not required to prepare any documentation of internal control for their working papers.

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Definitions:

Platitudes

Statements that are used often and over time have become trite, commonplace, or clichéd.

Pareto Efficient Allocation

An allocation of resources that cannot be modified to make anyone better off without making someone else worse off.

Utility Function

An economic model that represents a consumer's preference ranking for various bundles of goods by assigning a utility value to each bundle.

Pareto Optimal Allocation

A distribution of resources in an economy where improving the situation of one person necessitates detriment to another.