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

question 41

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 entity's internal control is less than effective.
• B) Statements suggesting only negative assurance.
• C) A conclusion that the entity'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.

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Definitions:

Canadian Security

A financial instrument issued in Canada, such as stocks, bonds, or other investment vehicles, regulated by Canadian laws.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine their relative purchasing power.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Exchange Rate

The price of one country's currency expressed in terms of another country's currency, used for foreign exchange transactions.