It Is Important for the Public Accountant to Consider the Competence

question 29

Multiple Choice

It is important for the public accountant to consider the competence of the audit clients' employees because their competence bears directly and importantly upon the

• A) cost/benefit relationship of internal controls.
• B) achievement of the objectives of the system of internal control.
• C) comparison of recorded accountability with assets.
• D) timing of the tests to be performed.

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Definitions:

Conclusion

The end or finish of an event, process, or text, typically the part where final judgments or statements are made.

Direct Observation

The method of gathering data through immediate, firsthand observation of people or phenomena.

Knowledge

Acquainted with or understanding of facts, information, descriptions, or skills acquired through experience or education.

Visual

Relating to seeing or sight, involving the use of vision.