When an Auditor Updates His or Her Understanding of the Entity

question 127

Multiple Choice

When an auditor updates his or her understanding of the entity and its environment, _______.

• A)each audit should be viewed identically to previous audits
• B)each audit should be viewed independently from previous audits
• C)each audit should be viewed with respect to the current audit of other clients
• D)the auditor should be sure that senior management agrees with the auditor's understanding, and modify appropriately if not

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Definitions:

Hand-off-automatic Circuit

A control circuit configuration that allows a device or system to be operated manually or automatically, based on the position of a selector switch.

Pilot Control Device

A mechanism or component used to regulate the operation of machinery or systems through the control of smaller power inputs.

Loss of Power

A situation where electrical power is interrupted or unavailable to a device or area.

Two-wire Motor

A motor designed to be operated with two electrical connections, typically for power and ground.