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:

Aggregate Supply Curve

displays the total output of goods and services that firms in an economy are willing to produce and sell at different price levels, in a given time period.

Cost-Push Inflation

Inflation caused by increases in the costs of production, such as raw materials or wages, leading to a decrease in supply and an increase in prices.

Demand-Pull Inflation

A situation where prices rise because the demand for goods and services exceeds their supply in the economy.

Aggregate Demand

The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.