The Actual Operation of an Internal Control System May Be

question 103

Multiple Choice

The actual operation of an internal control system may be most objectively evaluated by:

• A) completing a questionnaire and flowchart related to the accounting system in the year under audit.
• B) substantive tests of accounts balances based on the auditor's assessment of internal control strength.
• C) selection of items processed by the system and determination of the presence or absence of errors and control test deviations.
• D) review of the previous year's audit work papers to update the report of internal control evaluation.

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Definitions:

Biological model

An explanation for behavior and phenomena based primarily on biological factors, such as genetics, neuroscience, and evolutionary principles.

Hostility Toward

Feelings or expressions of intense anger or antagonism directed at someone or something.

An Out-group

A sociological term for groups an individual does not belong to or identify with, often viewed with indifference or hostility.

Reference Group

A group that provides a standard of comparison against which we evaluate ourselves.