At the End of Internal Control Testing,the Auditor May Conclude

question 85

Multiple Choice

At the end of internal control testing,the auditor may conclude that

• A)internal controls are effective in preventing or detecting misstatements for the assertions tested for the significant accounts in the business process
• B)internal controls are effectively designed to prevent or detect misstatements for the significant accounts in the business process
• C)internal controls are not effectively designed for the significant accounts in the business process
• D)internal controls are not effective for the procedures tested for the significant accounts in the business process

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Definitions:

Equity Holders

Individuals or entities that own equity instruments in a corporation, such as stocks, and thus have an ownership interest in the company.

Financial Structure

The mix of debt and equity that a company uses to finance its operations and growth.

Order For Relief

A court order in bankruptcy proceedings that allows for the commencement of bankruptcy processes and relief for the debtor.

Involuntary Bankruptcy

A legal process initiated by creditors rather than the debtor, where a court is asked to declare a debtor bankrupt and liquidate assets to pay off debt.