When Management Chooses to Include Information in Its Report on ICFR

question 2

Multiple Choice

When management chooses to include information in its report on ICFR that is in addition to the information required to be provided,what should the auditor do?

• A)The auditor must endorse the information.
• B)The auditor must include the information as part of the opinion.
• C)The auditor will disclaim an opinion on that additional information.
• D)The auditor will present the information in a separate schedule in the footnotes.

Understand the importance of detail and comprehensiveness in business plans for conveying the company’s future.

Acknowledge the role and function of various planning documents such as budgets, strategic plans, and financial projections.

Recognize the importance of scenario analysis in planning for risk mitigation.

Understand the dual purpose of financial plans in predicting future performance and setting goals.

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Definitions:

Asset

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to the net income or loss.

Liability

A financial obligation or amount owed by a business to external parties or individuals.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, representing the cumulative wear and tear or obsolescence of the asset.