The Quality of an Organization's Internal Control Will Affect Both

question 55

True/False

The quality of an organization's internal control will affect both the audit approach and the amount of testing needed for an engagement.

---

Definitions:

Detachment

Lack of willfulness or emotional concern. Detachment through ascetic denial (or, failing that, aesthetic contemplation) was proposed by the great pessimist Arthur Schopenhauer as a method of responding to the fact that life is filled with frustration due to our incessant irrational desires. Schopenhauer’s answer is similar to that of the ancient philosophy called Stoicism, which also teaches that most of our passions are irrational and are best ignored through the detachment and commitment to reason.

Golden Rule

A moral principle that suggests treating others as one would like to be treated themselves.

Daoism

A philosophical and religious tradition rooted in Chinese culture that emphasizes living in harmony with the Dao, which is the fundamental nature of the universe.

Confucianism

East Asian philosophy–religion based on the teachings of the Chinese philosopher Confucius (551–479 BCE). Confucianism is concerned with harmonious social and political relationships, good leadership, and getting along with others through cultivating personal virtue. The central question in Chinese thought generally is the ethical question of what is the good life. For Confucius, the answer was to live in harmony with other human beings, and his philosophy focuses on “the Way” (Dao or Tao) to do that.