When the Auditor Is Engaged to Report on the Internal

question 56

Multiple Choice

When the auditor is engaged to report on the internal controls:

• A) only those areas that the auditor has time to report on will be included in the study.
• B) all areas of the structure will be included in the study.
• C) all areas of the structure will be included in the study unless specifically excluded by agreement.
• D) only those areas where control risk is low will be included in the study.

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Definitions:

External Sources

Outside entities, data, or information that contribute to an organization's decision-making, research, or strategic planning.

TPSs

Transaction Processing Systems, computerized systems that perform and record the daily routine transactions necessary to conduct the business; they serve at the operational level of an organization.

Walmart

An American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

Enterprise

A large company or organization, especially one with complex structures and operations, often spanning multiple industries or geographic locations.