The Scope of the Audit Defines the Boundaries of the Audit

question 185

Multiple Choice

The scope of the audit defines the boundaries of the audit by addressing such items as the audit period or number of locations to be reviewed. Some important considerations when defining the scope of an audit include all of the following given below EXCEPT:

• A) Program or management objectives (e.g., the audit may be limited to a specific program within an organization).
• B) Determine how audit findings should be formulated.
• C) Risks identified (inherent and control risks), also called level of risks and extent of vulnerability to the risk/strength of control activities.
• D) Type and extent of problems found in prior years' audit reports and Preliminary judgment about materiality levels.

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Definitions:

Governance

The framework of rules, practices, and processes by which a firm or organization is directed and controlled, focusing on the mechanisms for ensuring accountability.

Trust-Building

The process of establishing and enhancing trust among team members or within an organization through transparent communication, reliability, and integrity.

Intelligent

refers to the ability to learn, understand, and apply knowledge, reasoning, and problem-solving.

Dependable

Describes something or someone reliable, trustworthy, and consistent in performance or behavior.