An Auditor's Documentation of the Client's System of Internal Controls

question 59

Multiple Choice

An auditor's documentation of the client's system of internal controls ________.

• A)should always be written and updated regularly as the auditor gains further understanding
• B)is the client's responsibility, and should be provided to the auditor by the client
• C)should be jointly drafted by the auditor and the client
• D)should be retained in the permanent audit file and never shared with the client

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Definitions:

Common Stock Subscribed

An agreement by investors to purchase common stock, where the stock is not immediately issued but is promised for future issuance.

Installment

A portion of a debt or loan that is paid at regular intervals, usually monthly, as part of a payment plan.

Child-free

The decision by individuals or couples not to have children, either for personal, environmental, or other reasons.

Representative

A person chosen or appointed to act or speak for another or others, typically in a political or organizational context.