A Material Weakness That Exists at Year-End Will Result in What

question 23

Multiple Choice

A material weakness that exists at year-end will result in what type of audit report on internal control?

• A)Adverse.
• B)Qualified.
• C)Unqualified.
• D)Unqualified with explanatory language.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a strong response.

Raise Profits

The process of increasing a company's profits through different methods such as reducing costs, increasing sales, or improving productivity.

Inverse Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that consumers are willing to purchase, plotted with price on the vertical axis and quantity on the horizontal axis.

Marginal Costs

The growth in total expenditure associated with the creation of one more unit of a good or service.