The Auditor's Primary Interest in the Control Environment Is on The

question 28

Multiple Choice

The auditor's primary interest in the control environment is on the:

• A) effectiveness of detailed policies and procedures that have been built into the system.
• B) pervasive effects that the attitudes and actions of management may have on the effectiveness of other internal controls.
• C) existence of external factors such as absentee owners and/or regulators such as the SEC.
• D) impact that the economic environment will have upon client operations.
• E) classes of transactions in the entity's operations that are significant to the financial statements.

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Definitions:

Consequent

The outcome or result in a conditional statement that follows the condition stated in the "if" clause.

Self-Contradiction

A statement that inherently contradicts itself, asserting and denying the same thing, thereby rendering it logically impossible.

Conditional

A statement that establishes a cause-and-effect relationship between two propositions.

Disjunct

Used in logic to refer to an either/or proposition where two options are presented and at least one of them must be true.