Which of the Following Statements Describes an Auditor's Obligation to Identify

question 589

Multiple Choice

Which of the following statements describes an auditor's obligation to identify deficiencies in the design or operation of internal control?

• A) The auditor should design and apply tests of controls to discover significant deficiencies in internal control that could result in material misstatements.
• B) The auditor need not search for significant deficiencies in internal control unless management requests an attestation that "no significant deficiencies in internal control were noted in the audit."
• C) The auditor should search for significant deficiencies in internal control if the auditor expects that controls are operating effectively (i.e., if the auditor plans to rely on controls).
• D) The auditor need not search for significant deficiencies in internal control but should document and communicate any such deficiencies that are discovered.

Recognize the practical application of pricing concepts in the real world, linking theory to consumer behavior and market dynamics.

Understand and apply basic security measures for computing devices.

Identify and utilize appropriate file systems for specific media and operating systems.

Execute basic command-line operations in various operating systems.

---

Definitions:

Legal Consultation

The act of seeking expertise or advice on legal matters from a qualified lawyer or law firm.

Ethical Values

The set of moral principles and standards that guide behavior in personal and professional contexts.

Utilization Review

A health care quality assurance activity that assesses the necessity, appropriateness, and efficiency of the use of health care services, procedures, and facilities.

Managed Care

A healthcare system that integrates the delivery and financing of healthcare services to improve quality and control costs.