To Comply with Auditing Standards,the Auditor Need Not Be Concerned

question 40

Multiple Choice

To comply with auditing standards,the auditor need not be concerned with all areas of internal control that apply to management.The auditor's primary concerns are with the system's ability to

• A)maintain reliable control systems pertaining to financial transactions.
• B)promote efficiency and encourage adherence to policy.
• C)prevent and detect financial statement fraud and error.
• D)provide reliable data and safeguard assets.

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Definitions:

Calculate

To determine mathematically the amount or number of something.

Operating Statement

A financial document, also known as an income statement, which shows a company's revenues, expenses, and profits or losses over a specific period.

Gross Margin

A company's total sales revenue minus its cost of goods sold, indicating the financial health and profitability of a product or business.

Direct Labor

Workers or employees who are directly involved in the production of goods or services.