Once an Understanding of the Client's Internal Control Is Obtained

question 7

Multiple Choice

Once an understanding of the client's internal control is obtained that is sufficient for audit planning, then the auditor must first assess:

• A) the level of control risk supported by the understanding obtained.
• B) whether a lower level of control risk could be supported.
• C) whether the financial statements are auditable.
• D) the level of control risk.

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Definitions:

Conscientiousness

The care a person gives to organization and thoughtfulness of others; dependability.

Neuroticism

Degree of emotional instability or stability.

Self-Concept

Self-concept is an individual's perception of their own strengths, weaknesses, and unique qualities, constituting their sense of who they are.

Conditional Positive Regard

Positive regard that is given only when the person is doing what the providers of positive regard wish.