A Modification of the Standard Report Is Required for All

question 20

Multiple Choice

A modification of the standard report is required for all of the following conditions except:

• A) There is a restriction on the scope of the engagement.
• B) There is other information contained in management's report on internal control.
• C) Management has concluded that internal controls are not effective.
• D) A significant subsequent event has occurred since the date being reported on.

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Definitions:

Business Law

The body of law that governs the rights, relations, and conduct of individuals and businesses engaged in commerce, merchandising, trade, and sales.

Criminal Law

The body of law dealing with crimes against the state or conduct detrimental to society as a whole, prescribing punishment for offenders.

Rights and Responsibilities

Fundamental ethical and legal entitlements paired with duties or obligations that individuals in a society possess.

Defamation

The process of making untrue remarks about someone that harm their good name.