Significant Deficiencies and Material Weaknesses in Internal Control of a Public

question 6

Multiple Choice

Significant deficiencies and material weaknesses in internal control of a public company must be reported in writing to which of the following?

• A) the Public Company Accounting Oversight Board
• B) members of management who are responsible for the related area of the company
• C) audit committee of the company's board of directors
• D) the AICPA

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Definitions:

Tradable Permits

Government-issued rights or allowances that permit the holder to emit a certain amount of a substance; can be bought, sold, or traded.

Common Resource

A resource like air or water that is not owned by anyone, but is available for use by everyone, often leading to overuse and depletion.

Marginal Social Benefit

The extra advantage to the community when one additional unit of a product or service is made.

Negative Externalities

External costs.