Shareholders Use Audit Reports to Monitor Management Performance

question 29

Multiple Choice

Shareholders use audit reports to monitor management performance. An example of an item that an audit report does NOT provide is:

• A) Reasonable assurance on reported information that might be used to provide justification for management's performance-based compensation.
• B) Access to foreign markets.
• C) An indication of whether or not a company has major in its internal control over financial reporting.
• D) Feedback on any ICFR material weaknesses that management may choose to use to improve operational or financial efficiency.

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Definitions:

Model Code

A set of standardized legal guidelines or principles, often offered as a template for legislative bodies to adopt or adapt.

Professional Responsibility

The ethical and moral duties and obligations that professionals must adhere to in their professional conduct.

New York

A state in the United States known for its significant impact on national law and as a major legal center.

California

A state in the western United States, known for its diverse geography, vibrant economy, and significant cultural influence.