Which of the Following Statements Regarding Auditor Documentation of the Client's

question 24

Multiple Choice

Which of the following statements regarding auditor documentation of the client's internal control is correct?

• A)Documentation must include flowcharts.
• B)Documentation must include procedural write-ups.
• C)No documentation is necessary,although it is desirable.
• D)No one particular form of documentation is necessary,and the extent of documentation may vary.

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Definitions:

Risk Management

The process of identifying, assessing, and prioritizing risks followed by the application of resources to minimize, control, or eliminate the impact of unforeseen events.

Command Economies

Command economies are economic systems where the government or a central authority makes all decisions regarding the production and distribution of goods and services.

Government Officials

Individuals who hold positions of authority in government institutions and are responsible for making and implementing public policies and laws.

Market System

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses.