Which of These Requires External Auditors to Understand a Client's

question 58

Multiple Choice

Which of these requires external auditors to understand a client's system of internal controls before conducting an audit-an understanding aided by documentation?

• A)SAS 1
• B)AS 2201
• C)The Securities and Exchange Act of 1939
• D)SOX Act of 2002

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Definitions:

Restrictions

Rules or limitations placed on activities, movements, or trade to control or regulate actions.

World Price

The international market price at which goods are traded between countries; it plays a crucial role in determining local prices and trade policies.

Exported

Goods or services sent from one country to another for sale or trade.

Imported

Goods or services brought into one country from another for sale or use.