The Objective of Understanding Internal Control and Assessing Control Risk

question 36

Multiple Choice

The objective of understanding internal control and assessing control risk in an IT system is to:

• A) aid in determining the audit evidence that should be accumulated.
• B) evaluate management's efficiency in designing and using the IT system.
• C) gain an understanding of the computer hardware and software.
• D) determine if the audit firm must have an IT auditor on the team.

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Definitions:

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than paying damages for breach.

Sale of Land

The process of transferring ownership of a parcel of land from one party to another through a legal sale agreement.

Impossibility

A doctrine under which a party to a contract is relieved of his or her duty to perform when that performance has become impossible because of the occurrence of an event unforeseen at the time of contracting.

Express Condition

A clearly stated, specific requirement within a contract that must be met for the contract's promises to be enforceable.