Which of the Following Is Not a Reason Why an Auditor

question 23

Multiple Choice

Which of the following is not a reason why an auditor obtains an understanding of internal controls?

• A) Understanding the entity's internal control is a requirement of GAAS.
• B) The auditor must use the information to assess the risk of material misstatements arising from the lack of internal control.
• C) It is the primary basis for the audit report.
• D) It assists the auditor in designing the nature, timing and extent of further audit procedures.

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Definitions:

Balanced Scorecard (BSC)

A strategic planning and management system used by organizations to communicate objectives, measure performance, and align business activities to the vision.

Customer Satisfaction

Refers to the degree to which a company's products or services meet or exceed customer expectations.

Rework Costs

Costs incurred to correct defective product or service before it is delivered to the customer.

Shopfloor Personnel Qualification

The level of training and skills that employees working directly in production or the manufacturing area possess.