Factors Relating to the Internal Control Environment That the Auditor

question 2

Multiple Choice

Factors relating to the internal control environment that the auditor needs to consider when assessing control risk for purchase, payment and payroll transactions include all of these except:

• A) integrity and ethical values.
• B) management's commitment to competence.
• C) design of substantive procedures.
• D) assignment of authority and responsibility.

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Definitions:

Homogeneous

Consisting of parts or elements that are all the same or similar in nature.

Heterogeneous

Composed of parts or elements that are different from each other, referring to diversity or variety within a group or structure.

Ingroup

Ingroup refers to a social group to which a person psychologically identifies as being a member.

Outgroup

A social group to which an individual does not identify or belong, often viewed with bias or prejudice.