Which of the Following Is Not Part of Obtaining an Understanding

question 56

Multiple Choice

Which of the following is not part of obtaining an understanding of internal control?

• A) Considering the types of misstatements that may occur in an entity's financial statements.
• B) Determining whether internal controls are operating effectively.
• C) Considering knowledge obtained from previous audits.
• D) Determining the extent to which internal controls are computerized.

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Definitions:

Subscription Charges

Fees paid regularly (e.g., weekly, monthly, annually) to subscribe to a service or product.

Disruptive Innovations

Innovations that significantly alter or disrupt the functioning of markets and industries, often displacing established market-leading firms and products.

Brick-And-Mortar Stores

Physical retail outlets located in buildings as opposed to online or virtual stores, offering face-to-face customer experiences.

Decision Support System

A computer-based system that assists in making decisions by providing relevant data and analysis tools.