The Auditor's Primary Objective to Obtain an Understanding of Internal

question 15

Multiple Choice

The auditor's primary objective to obtain an understanding of internal control is that it must provide:

• A) reasonable protection against client fraud and defalcations by client employees.
• B) an understanding that is sufficient for the auditor to plan the audit adequately.
• C) a basis for constructive suggestions to the client for improving the accounting system.
• D) a method for safeguarding assets, checking the accuracy and reliability of accounting data, promoting operational efficiency, and encouraging adherence to prescribed managerial policies.

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Definitions:

Vasoconstriction

The narrowing of blood vessels caused by contraction of the muscular wall of the vessels, which increases blood pressure.

Medulla Oblongata

The lower portion of the brainstem, which controls vital bodily functions such as respiration, heart rate, and blood pressure.

Hypothalamus

This part of the brain, positioned below the thalamus, plays a pivotal role in controlling the autonomic nervous system and pituitary gland activity, thereby regulating essential homeostatic functions including body temperature, thirst, hunger, and other equilibrium-maintaining systems.

Nuclei

The plural of nucleus, referring to the membrane-bound organelles found in eukaryotic cells that contain the genetic material (DNA) and control the cell's growth and reproduction.