Thea Lisowski Decided to List Several Questions for Herself About

question 53

Multiple Choice

Thea Lisowski decided to list several questions for herself about factors that influence management's attitudes towards internal control so as to assure herself that she could have
More confidence in management's abilities and integrity. When she was finished, which control
Environment element did she tick off on her working papers?

• A) management's philosophy and operating style
• B) communication and enforcement of integrity and ethical values
• C) commitment to competence
• D) participation by those charged with governance

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing current assets to current liabilities.

Interim Income Statements

Financial statements reporting a corporation's financial performance for a period shorter than a fiscal year, often quarterly.

Expenses

Costs incurred in the process of earning revenue, including operational costs, salaries, and utilities, among others.

PCAOB

Stands for the Public Company Accounting Oversight Board, which is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.