PCAOB Auditing Standard No

question 41

Multiple Choice

PCAOB Auditing Standard No.4 requires that the external auditors should take each of the following steps when reporting on whether a material weakness still exists in the internal controls except for:

• A) Evaluate whether management has accepted responsibility for the effectiveness of internal control
• B) Evaluate whether management asserts whether the controls are effective in correcting the material weakness
• C) Evaluate whether management has obtained sufficient evidence to support its assessment
• D) Evaluate whether management has conducted an audit of internal controls

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Definitions:

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period.

Labor Force

The total number of people employed or seeking employment in an economy at a given time.