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:

Federal Programs

Government initiatives designed to provide public services, support economic development, or address social issues.

Federal Offices

Governmental positions and departments at the national level, responsible for implementing and overseeing federal laws and policies.

Chairman Of The Joint Chiefs

The highest-ranking and senior-most military officer in the United States Armed Forces, who serves as the principal military advisor to the President, the National Security Council, the Homeland Security Council, and the Secretary of Defense.

Colin Powell

An American military general and statesman who served as the 65th United States Secretary of State, becoming the first African American to hold the position.