Which of the Following Statements About Understanding Internal Control Is

question 7

Multiple Choice

Which of the following statements about understanding internal control is not true:

• A) The auditor uses the knowledge of the system of internal control to design further audit procedures to collect evidence.
• B) In the presence of a strong system of internal control, the auditor may choose to collect less evidence about transactions or balances.
• C) In the audit of a private company, it is necessary to express an opinion on the system of internal control over financial reporting.
• D) A thorough understanding of the system of internal control assists the auditor in identifying potential types of misstatements.
• E) A thorough understanding of the system of internal control assists the auditor in understanding the risk of material misstatements.

Understand the concept of managers acting as 'linking pins' within organizational structures.

Identify the characteristics and functions of cross-functional teams, including their advantages and limitations.

Recognize the importance of managers in facilitating team performance and the different stages of team development.

Define and differentiate between virtual teams and their operational dynamics compared to traditional teams.

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Definitions:

Recognition

The cognitive process of identifying previously encountered information from an array of options.

Primacy Effect

A cognitive bias that results in a person remembering information from the beginning of a list better than information presented later.

Phi Phenomenon

The visual trick of seeing ongoing movement in distinct items observed quickly one after the other.

Recency Effect

The tendency to remember the most recently presented information best, which can affect how memories are retrieved.