Which of the Following Is True About the Auditors' Consideration

question 54

Multiple Choice

Which of the following is true about the auditors' consideration of internal control in a financial statement audit?

• A)The auditors must assess control risk at a level lower than the maximum.
• B)The auditors must prepare a flowchart description of internal control for their working papers.
• C)The auditors must obtain an understanding of the steps in processing major types of transactions.
• D)The auditors must perform tests of controls.

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Definitions:

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A condition resulting from the perception that one has no control over one's environment, leading to passivity and depression.

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