An Auditor's Understanding of a Client's System of Internal Control

question 102

Multiple Choice

An auditor's understanding of a client's system of internal control ________.

• A)is unrelated to the level of substantive procedures an auditor will conduct
• B)will help the auditor to determine areas of risk to direct audit attention and resources to
• C)is optional, and should only be conducted for larger clients
• D)is a helpful tool to determine the accuracy of account balances and transactions

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Definitions:

Pons

A portion of the brainstem involved in regulating vital functions such as breathing, sleep cycles, and communication between different parts of the brain.

Cerebellum

A part of the brain at the back of the skull in vertebrates, responsible for coordinating and regulating muscular activity.

Thalamus

A vital brain structure that acts as the main relay station for sensory information to the cerebral cortex, excluding smell.

Hypothalamus

A region of the brain responsible for the production of hormones that regulate body temperature, hunger, moods, and the release of hormones from other glands, among other critical functions.