The Primary Emphasis of Auditors Is on Internal Controls Over

question 16

Multiple Choice

The primary emphasis of auditors is on internal controls over classes of transactions because:

• A) financial statements may not accurately reflect accounting standards correctly.
• B) the accuracy of the output of accounting systems is based on the accuracy of the input and processing.
• C) the accuracy of the output of accounting systems is based on the accuracy of the input.
• D) all of the above.

---

Definitions:

Tariff

A levy placed by a government on goods entering or leaving the country to control trade and safeguard local industries.

Quota

A government-imposed limit on the amount or value of goods that can be imported or exported during a specific time frame.

Labor-Intensive

A process or industry that requires a large amount of labor to produce its goods or services, often necessitating significant workforce employment.

Textile Products

Goods produced by weaving, knitting, or felting fibers, including clothing, towels, and bedding.