It Is Important for the CPA to Consider the Competence

question 53

Multiple Choice

It is important for the CPA to consider the competence of the clients' personnel because their competence has a direct impact upon the

• A) cost/benefit relationship of the system of internal control.
• B) achievement of the objectives of internal control.
• C) comparison of recorded accountability with assets.
• D) timing of the tests to be performed.

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Definitions:

Decrease In Quality Of Life

A deterioration in an individual's or community's standard of living and well-being.

Mandatory Arbitration

A legal process where disputing parties are required to resolve their differences through an arbitrator, rather than through the court system.

Class Action

A lawsuit filed or defended by an individual or small group acting on behalf of a larger group.

Lengthy Resolution Process

A time-consuming procedure for resolving disputes or problems, often involving complex legal or negotiation steps.