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:

Leadership Substitutes Theory

A concept suggesting that certain characteristics of the organization, task, or subordinates themselves can diminish or replace the need for leadership.

Situational Leadership Theory

A leadership model that proposes the effectiveness of leadership styles varies depending on the readiness and competence of the followers.

Leadership Emergence

The process by which an individual becomes recognized by others within a group as possessing leadership qualities and takes on leadership roles.

Directive Leaders

Leaders who take charge by giving specific instructions and orders, focusing on task accomplishment and maintaining clear objectives for their team.