All of the Following Are Questions Auditors May Ask When

question 94

Multiple Choice

All of the following are questions auditors may ask when testing controls of safeguards over assets and records please choose the correct option:

• A) Is confidential or sensitive information kept separate from other records?
• B) Does management provide a favorable control environment in the organization?
• C) Does adequate physical security exist over assets and records? Are storerooms locked? Are equipment and inventories properly recorded? Are there adequate environmental controls over assets (e.g., appropriate temperature)?
• D) Only A & C

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Definitions:

Square Feet

A measurement of area used primarily in the United States, equivalent to the area of a square with sides of one foot.

Rental Expense

An expense incurred from leasing property or equipment for use in business operations.

Square Feet

A unit of area measurement equal to a square that is one foot on each side, used primarily in the United States.

Operating Department

A unit or division within a company that is directly involved in conducting core business operations, such as production or sales.