The Auditor Needs to Understand the Control Environment (Management and Governance)

question 93

Multiple Choice

The auditor needs to understand the control environment (management and governance) :

• A) to develop the overall audit plan.
• B) to set materiality levels and assess acceptable audit risk.
• C) because management's ability to identify and respond to risk affects the risk of material misstatements in the financial report.
• D) all of the above

---

Definitions:

Family Support Policies

Government or organizational policies designed to support families through financial aid, healthcare, parental leave, and other means.

Welfare Dependency

A situation where individuals or families rely on government welfare support for their income over an extended period, often debated in terms of social policy and economic impact.

Childcare

The care and supervision of a child or children, typically from infancy to adolescence, by a person other than the child's legal guardians.

Gender Gap

Refers to the disparities between men and women in various aspects of life, including but not limited to income, employment opportunities, education, and political representation.