Which of the Following Statements Included in Management's Assessment of the Effectiveness

question 15

Multiple Choice

Which of the following statements included in management's assessment of the effectiveness of internal control over financial reporting would be considered acceptable for issuing an unqualified opinion?

• A) Nothing has come to management's attention to suggest that the company's internal control is less than effective.
• B) Statements suggesting only negative assurance.
• C) A conclusion that the company's internal control over financial reporting is effective when a material weakness exists at the end of the reporting period.
• D) Disclosure of material weaknesses corrected during the period.

---

Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of time without exposure to the conditioned stimulus.

Extinction

In psychology, the process through which a conditioned response decreases in frequency and eventually disappears as a result of the withdrawal of reinforcement.

Contingency

The relationship between two events, one being contingent or a consequence of the other's occurrence.

Contiguity

The principle stating that events occurring close together in time or space are readily associated with each other.