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:

Alignment Clips

Small components used to ensure proper positioning and alignment of parts during assembly or installation.

Multi-leaf Suspension

A type of vehicle suspension system made up of several layers of metal springs to provide support and absorb shocks.

Rubber Load Cushion

A component made of rubber designed to absorb shock and reduce vibration in various applications, including the loading of goods.

Equalizing Beams

Used in suspension systems, especially in heavy vehicles, to distribute load evenly across multiple axles for improved stability and wear reduction.