Why Is It Important to Obtain an Understanding of the Internal

question 36

Multiple Choice

Why is it important to obtain an understanding of the internal control system?

• A) weak internal controls may increase the risk of material misstatement.
• B) to determine the level of inherent risk.
• C) because strong internal controls indicate management integrity.
• D) all of the above

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Definitions:

Interactionally

Pertaining to or involving interaction or reciprocal action, influence, or communication among people.

Race

A socially constructed categorization of humans based on physical characteristics, ancestry, historical affiliations, and cultural elements.

Evidence

Information used to support or refute an argument or claim, often presented in legal contexts to prove or disprove the elements of a case.

Passing

Presenting yourself as a member of a different group than the stigmatized group to which you belong.