An Auditor Needs to Understand a Company's Internal Controls in Order

question 52

True/False

An auditor needs to understand a company's internal controls in order to anticipate the types of material misstatements that may occur.

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Definitions:

Negative

Characterized by a lack of positive qualities, often associated with harmful or undesirable effects.

External Locus

The belief that outcomes in one's life are determined by external forces or circumstances beyond personal control.

Positive Attitude

A position resulting from healthy self-esteem, optimism, extraversion, and personal control.

Negative Attitude

The tendency to consistently view situations, people, and outcomes pessimistically or unfavorably.