For Which of the Following Matters Should an Auditor Obtain

question 25

Multiple Choice

For which of the following matters should an auditor obtain written management representations?

• A) Management's cost-benefit justifications for not correcting internal control weaknesses.
• B) Management's knowledge of future plans that may affect the price of the entity's stock.
• C) Management's compliance with contractual agreements that may affect the financial statements.
• D) Management's acknowledgment of its responsibility for employees' violations of laws.

Understand the balance of trade and the concept of trade deficits.

Recognize leading exports and imports of the United States and other countries, and the importance of service exports.

Understand the principles of absolute and comparative advantage as proposed by Adam Smith and David Ricardo.

Recognize the benefits of specialization and trading based on comparative advantage.

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Definitions:

British Pound

The currency of the United Kingdom, represented as GBP (£).

U.S. Citizen

A person who has acquired citizenship status of the United States of America through birth or naturalization.

Ad Valorem Duty

A type of tax charged based on the value of the product or property, commonly used in customs duties.

Ad Valorem Duty

A type of tax applied on the value of an item, commonly used in the context of customs duties on imported goods.