The Existence of a Material Weakness Led to an Adverse

question 2

Multiple Choice

The existence of a material weakness led to an adverse opinion in the internal control audit report of a publicly traded company.Which of the following statements is correct if management believes that it has remediated the weakness?

• A)Management may engage the auditors to report on whether the material weakness continues to exist prior to its next annual audit.
• B)Management is required to engage the auditors to report on whether the material weakness continues to exist prior to its next annual audit.
• C)Management may not engage the auditors to report on whether the material weakness continues to exist prior to its next annual audit.
• D)Management may engage the auditors to modify the prior adverse audit report be modified to an unqualified report.

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Definitions:

Task-Related Communication

The exchange of information and coordination efforts specifically focused on the completion and management of work-related tasks.

Probability

A measure of the likelihood that a given event will occur, often expressed as a number between 0 (impossible) and 1 (certain).

Grapevines

Informal channels of communication within an organization, often characterized by the unofficial spread of information.

Media Richness

The theory that describes the capacity of a given communication medium to effectively convey information and promote understanding.