An Auditor Should Obtain Sufficient Knowledge of an Entity's Information

question 1034

Multiple Choice

An auditor should obtain sufficient knowledge of an entity's information system relevant to financial reporting to understand the:

• A) Safeguards used to limit access to computer facilities.
• B) Process used to prepare significant accounting estimates.
• C) Procedures used to assure proper authorization of transactions.
• D) Policies used to detect the concealment of irregularities.

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Definitions:

Openness-Closedness

A dimension of personality that describes the degree to which a person is open to experiencing a variety of activities or is closed and prefers familiarity.

Self-Efficacy

The belief in one's abilities to succeed in specific situations or accomplish a task.

Defensive Self-Esteem

A form of self-esteem characterized by fragility and sensitivity to criticism, often resulting in aggressive or defensive reactions to perceived threats to self-image.

Collectivism

A cultural value that emphasizes group goals, interdependence, and the importance of cohesion within social groups.