Which of the Following Is Not a Reason Why an Auditor

question 23

Multiple Choice

Which of the following is not a reason why an auditor obtains an understanding of internal controls?

• A) Understanding the entity's internal control is a requirement of GAAS.
• B) The auditor must use the information to assess the risk of material misstatements arising from the lack of internal control.
• C) It is the primary basis for the audit report.
• D) It assists the auditor in designing the nature, timing and extent of further audit procedures.

---

Definitions:

Block Style

A formatting style where all lines of text begin at the left margin, common in business writing and web design.

Automatic Bullets Feature

A functionality in word processing and presentation software that automatically formats lists with bullet points as text is entered.

Enter Key

A key on a computer keyboard or keypad used to signal the computer to accept the data that has been typed or to start a new line.

Automatic Bullet Character

A feature in word processing software that automatically inserts bullet points into a list as you type.