Significant Deficiencies Need to Be Communicated to the Company's Audit

question 7

Multiple Choice

Significant deficiencies need to be communicated to the company's audit committee because:

• A) they represent material weaknesses that allow fraud to be perpetrated.
• B) they represent significant design flaws in internal controls.
• C) they represent falsification of accounting records.
• D) they represent disclosure of information related to issuance of a "going-concern" opinion.

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Definitions:

Total Product

The total output of goods and services produced by a firm or industry over a specific period.

Marginal Product

The additional output that is produced by using one more unit of a particular input, holding all other inputs constant.

Points A and B

Usually refers to specific positions or locations within a graph or model used in economic analysis and decision-making.

Units Per Period

A metric that indicates the quantity of production, sales, or any other measurable activity within a specified timeframe.