The Standard Report on Internal Controls Over the Financial Reporting

question 28

Multiple Choice

The standard report on internal controls over the financial reporting process is modified by the auditor in which of the following circumstances?

• A)Management's quarterly report on internal control is incomplete or improperly presented
• B)There is a restriction on the scope of the engagement
• C)The auditor decides to refer to the report of management for the auditor's own report
• D)There is other information in management's annual report on internal control over financial reporting
• E)Management's annual certification pursuant to Section 404 of the Sarbanes-Oxley Act is misstated
• F)both A and C
• G)both B and D
• H)both D and E

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Definitions:

Fight or Flight

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.

Inhibitory Neurotransmitters

Chemicals released from the neuron that prevent the next neuron from firing, thereby decreasing brain activity or stopping specific brain signals.

Vegetative Functions

Bodily processes necessary for life that occur involuntarily, such as breathing, heart rate, and digestion.

Adrenal Gland

The adrenal glands are small, triangular-shaped glands located above the kidneys that produce hormones such as cortisol and adrenaline, involved in stress response and metabolic processes.