Which One of the Following Statements Regarding Auditor Documentation of the Client's

question 105

Multiple Choice

Which one of the following statements regarding auditor documentation of the client's internal controls is correct?

• A) No one particular form of documentation is necessary, and the extent of documentation may vary.
• B) No documentation is necessary, although it is desirable.
• C) Documentation must include procedural write-ups.
• D) Documentation must include flowcharts.

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Definitions:

Globalization

The integration and interdependence of economic, social, cultural, and ecological facets of life, enabled by rapid advances in information technology.

Societal Pressure

The influence exerted by the society on individuals or organizations to conform to certain norms, values, or behaviors.

"As Is" Process

The documentation or mapping of a process or system exactly as it currently operates, without any modifications or improvements.

Process Resources

Assets, personnel, information, and equipment required to perform and manage process activities within an organization.