Which One of the Following Statements About the Internal Control

question 101

Multiple Choice

Which one of the following statements about the internal control questionnaire is NOT correct?

• A) The primary advantage of the questionnaire approach is the relative completeness of coverage of each audit area that a good instrument affords.
• B) The primary disadvantage of the questionnaire approach is that individual parts of the system are examined without providing an overall view.
• C) It is unacceptable for the auditor to rely on an internal control questionnaire that has been filled out by client's personnel.
• D) The questionnaire can cover each audit area reasonably quickly, and it can be accomplished at the beginning of the audit engagement.

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Definitions:

Witnesses' Signatures

The act of signing a document by someone who observes the signing process, to confirm its authenticity or the signers' agreement.

Revocation

The act of officially canceling or withdrawing a decision, offer, or legal right, often used in contexts such as contracts, wills, and powers of attorney.

Divorce

The formal termination of a marital union by a recognized authority, usually a court or a legal institution.

Charitable Trust

A legal arrangement in which assets are held and managed by one party for charitable purposes, providing benefit to the public or a segment of the public.