Which of the Following Is Not True

question 28

Multiple Choice

Which of the following is not true?

• A)The auditor should not communicate with management until the audit of internal control over financial reporting is finished.
• B)Written communication between the auditor and management about internal control over financial reporting should include the definitions of control deficiencies, significant deficiencies, and material weaknesses.
• C)The auditor should not include in the audit report that no significant deficiencies were noted during an audit of internal control over financial reporting.
• D)If fraud is discovered, the auditor must report it to the appropriate level of management.

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Definitions:

Marginal Cost

The money spent on producing another unit of a product or service.

Cartel

A coalition of suppliers or manufacturers aimed at preserving elevated price levels and reducing competitive pressures.

Marginal Cost

The upsurge in total expenditure associated with the fabrication of one further unit of a good or service.

Cartel

A formal agreement among competing firms to control prices, limit output, or divide markets to gain an advantageous market position.