An Auditor Should Consider Two Key Issues When Obtaining an Understanding

question 126

Multiple Choice

An auditor should consider two key issues when obtaining an understanding of a client's internal controls. These issues are

• A) the effectiveness and efficiency of the controls.
• B) the frequency and effectiveness of the controls.
• C) the design and operating effectiveness of the controls.
• D) the implementation and operating effectiveness of the controls.

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Definitions:

Long-Term Outlook

A perspective or plan that focuses on future outcomes or results over an extended period.

Future Orientation

Future orientation is a mindset or cultural value that emphasizes planning, foresight, and consideration for future consequences in decision-making.

Concept of Time

A framework for understanding the sequence of events, the duration of events, and the intervals between them.

World Events

Significant occurrences or happenings around the globe, including political, social, economic, and natural events.