The Auditor's Communication of Material Weaknesses in Internal Control for a Nonpublic

question 62

Multiple Choice

The auditor's communication of material weaknesses in internal control for a nonpublic company is

• A) Required to enable the auditor to state that the examination has been made in accordance with generally accepted auditing standards.
• B) The principle reason for studying and evaluating the system of internal controls.
• C) Incidental to the auditor's objective of forming an opinion as to the fair presentation of the financial statements.
• D) Required to be documented in a formal written report to the board of directors or the board's audit committee.

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Definitions:

Digital Calipers

Precision measuring tools that use digital displays to show measurements for distances or diameters, offering quick and accurate readings.

Air-over-hydraulic System

A braking system that uses air pressure to actuate hydraulic brakes.

Canister-spring Brake

A brake system that uses a canister to hold a compressed spring for emergency and parking brake applications.

Driveline Mounted

Refers to components or assemblies attached directly to the driveline, which transmits power from the engine to the wheels.