The Absence of Sufficiently Documented Evidence to Support Management's Assessment

question 63

Multiple Choice

The absence of sufficiently documented evidence to support management's assessment of the operating effectiveness of ICFR is a(n) :

• A) material weakness that would require the auditor to withdraw from the audit engagement.
• B) internal control deficiency that could preclude the issuance of an unqualified audit report.
• C) matter of concern only to the company's audit committee, predecessor auditors, and internal auditors.
• D) example of the effective operation of the company's document retention policy.

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Definitions:

Government Cost

Expenses incurred by governmental bodies in the execution of policies, projects, and provision of public services.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive.

Imported Beer

A type of beer that is produced outside the country in which it is sold.

Consumption

The use of goods and services by households, involving the purchasing and utilization of commodities to satisfy needs and wants.