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:

Thumb Sucking

A common behavior in infants and young children where they comfort themselves by sucking their thumb.

Teratogens

Teratogens are substances, environmental exposures, or pathogens that can cause developmental defects in a fetus when a mother is exposed during pregnancy.

DeCasper

Anthony J. DeCasper, a researcher known for his studies on prenatal and neonatal learning and memory capabilities, such as infants’ preference for their mother’s voice.

Infants

Infants are the youngest group of offspring, typically considered to be from birth up to 1 year old, characterized by rapid development across multiple domains.