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.

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Definitions:

Life on Mars

The concept or investigation into the existence of life, past or present, on the planet Mars.

Scientific Method

A systematic approach to research in which a problem is identified, relevant data are gathered, a hypothesis is formulated from these data, and the hypothesis is empirically tested.

Sexual History

An account of an individual's past sexual activities, preferences, and significant experiences.

Divorced

The legal dissolution of a marriage by a court or other competent body, resulting in the termination of a marital union.