An Auditor Identified a Significant Deficiency in Internal Control in December.The

question 35

Multiple Choice

An auditor identified a significant deficiency in internal control in December.The client was informed and the client corrected the significant deficiency shortly before year-end (December 31) ;the auditor agrees that the correction eliminated the significant deficiency as of December 31.The appropriate audit report on internal control under a PCAOB Standard No.5 audit of internal control is:

• A)Adverse.
• B)Unqualified.
• C)Unqualified with explanatory language relating to the significant deficiency.
• D)Qualified.

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Definitions:

Patient Protection and Affordable Care Act

Health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit.

Social Security Act

A law enacted to provide for the general welfare by establishing a system of federal old-age benefits, and by enabling states to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws.

Employee Retirement Income Security Act

A federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Family and Medical Leave Act

A U.S. law that provides employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons.