Which of the Following Conditions Is Necessary for a Practitioner

question 89

Multiple Choice

Which of the following conditions is necessary for a practitioner to accept an attest engagement to examine and report on an entity's internal control over financial reporting?

• A) The practitioner anticipates relying on the entity's internal control in a financial statement audit.
• B) Management accepts responsibility for the effectiveness of internal control.
• C) The practitioner is a continuing auditor who previously has audited the entity's financial statements.
• D) Management agrees not to present the practitioner's report in a general-use document to stockholders.

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Definitions:

Cost Performance Index

A measure in project management that calculates the efficiency of budget utilization by dividing the earned value by the actual costs.

Schedule Variance

The difference between the planned and the actual project progress, indicating whether a project is ahead or behind schedule.

Resource Flow Variance

Variations in the rate, timing, and quality of resources being supplied to or produced by a process.

Detailed Cost Estimates

An in-depth prediction of the likely costs of a project, based on detailed information and analysis.