Which of the Following Is the Least Important Audit Reason

question 37

Multiple Choice

Which of the following is the least important audit reason for the auditor's obtaining an understanding of a company's internal control?

• A)To serve as a basis for constructive suggestions.
• B)To plan subsequent substantive tests.
• C)To identify types of possible misstatements that may occur.
• D)To consider factors that may affect the risk of material misstatement.

---

Definitions:

Diversification Levels

Degrees to which an organization expands its operations or investments into new areas that are distinct from its core activities.

Human Resource Management

A methodical plan for the efficient management of personnel within a company or organization aimed at achieving a competitive edge in the business.

Acquisition

The process by which one company purchases most or all of another company's shares to gain control of that company.

Organizational Success

The achievement of the goals and objectives set by an organization, often measured by financial performance, market share, or the realization of its strategic aims.