Understanding Components of Internal Control and Assessing the Level of Control

question 21

Multiple Choice

Understanding components of internal control and assessing the level of control risk are primarily used by the auditor to:

• A) determine whether procedures and records concerning the safeguarding of assets are reliable.
• B) modify the initial assessments of inherent risk and preliminary judgements about materiality levels.
• C) determine the nature, timing, and extent of substantive tests for financial statement assertions.
• D) ascertain whether the opportunities to allow any person to both perpetrate and conceal irregularities are minimised.

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Definitions:

School Counselor

A professional who provides students with academic, career, college readiness, and personal/social competencies.

Behavioral Assessment

Process that includes the identification and measurement of meaningful response units (including overt behavior, feelings, and cognitions) and their controlling variables (both environmental and organismic) for the purposes of understanding and altering human behavior.

Triadic Reciprocality Model

A theory in psychology that posits human behavior is influenced by the interaction between personal factors, behavior, and the environment.

Controlling Variables

The practice of keeping variables constant or regulated in an experiment to ensure that the results are due to the variable being tested.