When Planning an Audit of Internal Controls Over Financial Reporting

question 24

Multiple Choice

When planning an audit of internal controls over financial reporting, the auditor needs a comprehensive knowledge of the company and its environment. This knowledge might include:

• A) preliminary judgments about the results of operations.
• B) assessments about the efficiency of operations.
• C) conclusions about the effectiveness of internal controls.
• D) an assessment of the effectiveness of the audit committee.
• E) legal or regulatory matters of which the company is aware.

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Definitions:

Negative Message

Communication that conveys bad news, rejection, or a negative outcome to the recipient.

Channel And Medium

The means through which a message is transmitted from sender to receiver, such as spoken words, written text, or digital media.

Communicating Negative Information

The process of conveying unfavorable, adverse, or disappointing news or feedback in a manner that is clear, empathetic, and constructive.

Future Correspondence

Communication that is planned or expected to take place in the future, often involving letters, emails, or other forms of messaging.