The Auditor Considers Internal Control by Four Steps

question 76

Multiple Choice

The auditor considers internal control by four steps.What is the order for these steps?
1) Obtain an understanding of internal control.
2) Assess control risk.
3) Perform tests of controls.
4) Decide on planned detection risk and substantive testing.

• A) 4, 1, 2, 3
• B) 1, 2, 3, 4
• C) 2, 1, 3, 4
• D) 1, 3, 2, 4

Recognize the legal significance and implications of indorsements on negotiable instruments.

Identify the roles and responsibilities of a holder in due course and the protections afforded to them.

Explain the distinction between order paper and bearer paper and the methods of their negotiation.

Comprehend the principles of the impostor rule, fictitious payee rule, and their exceptions.

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Definitions:

Employment Problems

Issues or disputes arising in the workplace, including conflicts, discrimination, or dissatisfaction.

Behavioral Interview Questions

Questions used in job interviews that ask candidates to describe past behavior as an indicator of future performance.

STAR Method

A technique used in interviews to answer behavioral question efficiently, focusing on Situation, Task, Action, and Result.

Functional Résumé

A functional résumé emphasizes a job applicant's skills and experiences rather than their chronological work history.