After Finishing the Procedures to Obtain an Understanding of Internal

question 70

Multiple Choice

After finishing the procedures to obtain an understanding of internal control in an audit engagement,the auditor should perform tests of controls on

• A)those controls that the auditor plans to rely upon.
• B)those controls in which material weaknesses were identified.
• C)those controls that have a material effect upon the financial statement balances.
• D)a random sample of the controls that were reviewed.

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Definitions:

Debtor

An individual or entity that owes money or is in debt to another party.

Composition Agreement

An arrangement between a debtor and their creditors in which the creditors agree to accept a partial payment in satisfaction of the debts owed.

Creditors

Creditors are individuals or entities that are owed money by another entity or individual, known as a debtor.

Debtor

A person, company, or country that owes money.