In an Audit of Financial Statement in Accordance with Generally

question 94

Multiple Choice

In an audit of financial statement in accordance with generally accepted auditing standards, an auditor is required to:

• A)Document the auditor's understanding of the client company's internal controls
• B)Search for weaknesses in the operation of the client company's internal controls
• C)Perform tests of controls to evaluate the effectiveness of the client company's internal controls
• D)Determine whether controls are appropriately operating to prevent or detect material misstatements

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Definitions:

Team Training

A process of teaching a group of individuals to work together effectively, enhancing their collective skills in communication, decision-making, and problem-solving.

Organisational Capabilities

The collective skills, competencies, and resources that enable an organization to execute strategies and achieve its goals.

Working Alone

The act of completing job tasks and responsibilities without the direct involvement of other individuals.

Social Loafing

The tendency of some people to avoid responsibility by ‘free‐riding’ in groups.