$1: The auditor should be on constant alert for indications of a breakdown or weaknesses in internal control which includes numerous checks payable to cash, not up to date recording, chaotic filing of supporting documents, numerous adjustments, and documents supporting cash disbursements are not canceled ona timely basis. $2: The document where the auditor communicates reportable conditions is called a management letter or an internal control letter. $3: There is no standard form in communicating reportable conditions. A: Ifall statements are correct. B-If only one statement is correct. C- If only two statements are correct. D- If all statements are incorrect.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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$1: The auditor should be on constant alert for indications of a breakdown or weaknesses in internal control which includes numerous checks payable to cash, not up to date recording, chaotic filing of supporting documents, numerous adjustments, and documents supporting cash disbursements are not canceled ona timely basis.
$2: The document where the auditor communicates reportable conditions is called a management letter or an internal control letter.
$3: There is no standard form in communicating reportable conditions.

A: Ifall statements are correct.
B-If only one statement is correct.
C- If only two statements are correct.
D- If all statements are incorrect.

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