The Auditors Who Become Aware of an Internal Control Significant

question 84

Multiple Choice

The auditors who become aware of an internal control significant deficiency are required to communicate this to the:

• A)Client's legal counsel.
• B)Compensation committee.
• C)Audit committee.
• D)Internal auditors.

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Definitions:

Stock Investments

Investments made by purchasing shares of companies in the hope of earning dividends or selling the shares at a higher price.

Insignificant Influence

A situation where an investor does not have the power to participate in the financial and operating policy decisions of another entity.

Credit Sale

A transaction where goods or services are provided to a customer with an agreement to pay later, often within a specified timeframe.

Translated

In finance, "translated" often refers to converting financial statements or amounts from one currency into another to facilitate comparison or consolidation.