Prior to Issuing a Report on Internal Controls Over Financial

question 25

Multiple Choice

Prior to issuing a report on internal controls over financial reporting,an auditor is required to

• A) Perform procedures sufficient to identify all control deficiencies.
• B) Communicate to management, in writing, all control deficiencies previously included in written communication from the internal auditors.
• C) Communicate to management, in writing, all control deficiencies identified during the audit and inform the audit committee when such a communication has been made.
• D) Represent that no significant deficiencies were noted during the audit of internal control.

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Definitions:

Containment Policy

A United States policy using numerous strategies to prevent the spread of communism abroad during the Cold War.

Military-Industrial Complex

The relationship between a country's military and the defense industry that supplies it, seen as a vested interest which influences public policy.

Red Scare

Periods of intense fear and suspicion in the United States about communist influence and potential espionage during the early and mid-20th century.

Douglas MacArthur

An American general and field marshal of the Philippine Army who played a prominent role in the Pacific theater during World War II and was later involved in the Korean War until his removal by President Truman.