When Communicating Internal Control-Related Matters Noted in an Audit of a Nonpublic

question 42

Multiple Choice

When communicating internal control-related matters noted in an audit of a nonpublic company,an auditor's report issued on significant deficiencies should indicate that

• A) Errors or fraud may occur and not be detected because there are inherent limitations in any internal control system.
• B) The issuance of an unqualified opinion on the financial statements may depend on corrective follow-up action.
• C) The deficiencies noted were not detected within a timely period by employees in the normal course of performing their assigned functions.
• D) The purpose of the audit was to report on the financial statements and not to provide assurance on internal control.

Apply chi-square tests to assess independence between two categorical variables.

Report the results of chi-square tests correctly, including significance levels, effect sizes, and critical values.

Understand the purpose and application of the chi-square statistic.

Calculate chi-square statistics for given data.

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Definitions:

Metaparadigm

A fundamental set of concepts and propositions that defines a discipline's overarching framework or viewpoint.

Syntactical

Related to syntax, which is the set of rules, principles, and processes that govern the structure of sentences in a given language or system.

Unique Focus

Unique Focus signifies a special or specific concentration on a distinct aspect or area within a broader field of study or practice.

Discipline

A field of study or branch of knowledge; also, the practice of training people to obey rules or a code of behavior.