If the Auditor Concludes That Audit Committee Oversight of Financial

question 20

Multiple Choice

If the auditor concludes that audit committee oversight of financial reporting and ICFR is ineffective and that a material weakness exists, the auditor should:

• A) communicate this directly to the SEC.
• B) communicate this to the audit committee.
• C) communicate this to the predecessor auditor.
• D) communicate this to the board of directors.

---

Definitions:

Inefficiently Low-Quality Apartments

Apartments that are below optimal living standards due to market failures, often resulting in lower than socially preferable quality.

Opportunity Cost

Opportunity cost is the potential benefit that one misses out on when choosing one alternative over another.

Black Markets

Illegal markets that arise when selling, trading, or buying goods or services are prohibited by law or are controlled by restrictive practices.

Price Floors

A legal minimum price below which a good or service cannot be sold, intended to protect producers from market prices that are too low.