The Standard Report on Internal Controls Over the Financial Reporting

question 19

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 annual report on internal control is incomplete or improperly presented
• B)There is a restriction on the purpose 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 quarterly report on internal control over financial reporting
• E)Management's annual certification pursuant to Section 302 of the Sarbanes-Oxley Act is misstated
• F)both A and E
• G)both B and C
• H)both D and E

---

Definitions:

1099 Form

A tax form in the United States that reports various types of income other than wages, salaries, and tips.

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing total tax paid by the taxable income.

Taxable Income

The amount of an individual's or organization's income used to determine how much tax is owed, minus deductions and exemptions.

Federal Taxes

Taxes imposed by the federal government on income, property, and consumption to fund national programs and services.