Which of the Following Is Not True with Respect to the Control

question 377

Multiple Choice

Which of the following is not true with respect to the control activities of an entity?

• A) Control activities are the policies and procedures that help ensure that management directives are carried out.
• B) Control activities are the policies and procedures that help ensure that the financial statements are fairly presented in conformity with generally accepted accounting principles.
• C) An understanding of control activities may be obtained while the auditor is obtaining an understanding of the other components of internal control.
• D) An understanding of control activities does not require an understanding of control activities related to each account balance included in the financial statements.

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Definitions:

Audio And Video

Technologies and devices used to record, transmit, store, process, and playback sound and visual media files.

Vicarious Liability

Holding one person or entity legally responsible for the actions of another, typically an employee or agent.

Principal-Agent Relationship

A relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in conducting transactions with third parties.

Strict Liability

A legal principle where a party is responsible for damages caused by their actions, regardless of negligence or intent.