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:

Performance Appraisal

A systematic evaluation process by which an employee's job performance is assessed and documented.

Relative Standing

An individual's or entity's position or rank in comparison to others within a specific context or group.

Job Sharing

A work arrangement whereby two or more individuals share the responsibilities and duties of one full-time job, splitting the hours, benefits, and pay.

360-degree Assessment

A feedback mechanism where an employee is evaluated by peers, supervisors, subordinates, and sometimes clients, providing a comprehensive view of their performance.