After Obtaining an Understanding of the Entity's Internal Control and Assessing

question 108

Essay

After obtaining an understanding of the entity's internal control and assessing control risk, an auditor of a nonpublic company has decided not to perform additional tests of controls.Why would an auditor conclude that additional testing is not needed?

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Definitions:

Neighborhood Integration

Neighborhood Integration refers to the process of creating racially and culturally mixed communities, aiming to reduce segregation and promote diversity and equality.

Homeownership

The state or condition of owning a home, often considered a key aspect of the American dream, symbolizing stability and economic prosperity.

Civil Rights Act

Legislation passed in the United States aimed at ending discrimination based on race, color, religion, sex, or national origin.

Racial Makeup

The composition or distribution of races within a particular population or area.