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The Auditor Must Communicate Significant Deficiencies in Internal Control Only

question 10

True/False

The auditor must communicate significant deficiencies in internal control only after the entire audit is complete to ensure the auditor has a sufficient understanding of the circumstances surrounding the deficiency.


Definitions:

Unrealized Increase/Decrease

Refers to the increase or decrease in the value of an asset or investment that has not been sold.

Fair Value

An impartial estimate of the market value of an asset or liability, based on current market prices.

Available-for-Sale

A classification for financial assets that are not to be held to maturity or for trading purposes, allowing for changes in value to be recorded in other comprehensive income.

Unrealized Increase/Decrease

Unrealized increase/decrease refers to the changes in the value of investments that have not yet been sold and the gains or losses have not been 'realized' through a transaction.

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