The Auditor's Understanding of the Client's System of Internal Control

question 75

Multiple Choice

The auditor's understanding of the client's system of internal control should be ________.

• A)discussed among audit team members only
• B)submitted to the client's internal audit function for agreement/approval
• C)well documented so it can be referred back to at any time
• D)in documentary form only and submitted to the client's attorneys for risk assessment

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Definitions:

Knowledge And Skills

The theoretical understanding and practical abilities that individuals possess, relevant to performing tasks or jobs.

Socialisation

Systematically changes the expectations, behaviour and attitudes of new employees.

New Employees

Individuals who have recently joined an organization or company and are in the process of adjusting and learning about their new roles.

Orientation

The process of familiarizing new employees with the organizational culture, policies, and specifics of their job role.