Which of the Following Is not Ordinarily a Procedure for Documenting

question 48

Multiple Choice

Which of the following is not ordinarily a procedure for documenting an auditor's understanding of internal control for planning purposes?

• A)Checklist.
• B)Flowchart.
• C)Questionnaire.
• D)Confirmation.

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Definitions:

Premium Payment

The amount paid for an insurance policy, either regularly or as a lump sum.

Flood Insurance

A specific insurance coverage against property loss from flooding, typically required for buildings in designated flood-prone zones.

Pooling Of Risk

The practice of spreading financial risks among a large number of participants, thereby minimizing the overall impact to any single participant.

Diversification

The strategy of investing in a variety of securities in order to lower the risk involved with putting money into few investments.