Which Statement Is Correct Concerning the Relevance of Various Types

question 77

Multiple Choice

Which statement is correct concerning the relevance of various types of controls to a financial statement audit?

• A)An auditor may ordinarily ignore the consideration of controls when a substantive audit approach is used.
• B)Controls over the reliability of financial reporting are ordinarily most directly relevant to an audit,but other controls may also be relevant.
• C)Controls over safeguarding assets and liabilities are of primary importance,while controls over the reliability of financial reporting may also be relevant.
• D)All controls are ordinarily relevant to an audit.

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Definitions:

Majority Unions

Organizations that represent the interests of a majority of workers in a particular sector or company, typically engaging in collective bargaining.

Nonmajority Unions

Labor unions that represent a segment of employees in a workplace without achieving majority status needed for formal recognition and bargaining.

Works Councils

An institutional representation of workers within a company, primarily found in Europe, aimed at facilitating dialogue between employees and management on workplace issues.

Certification Process

A formal procedure by which an accredited or authorized body assesses and recognizes that a person, product, or organization meets certain predefined standards.