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.

---

Definitions:

Formal Style

A type of writing or speech characterized by a structured, impersonal, and professional tone, often used in official communications and academic works.

Informal Language

A casual form of communication that uses everyday expressions and is typically used in personal conversations.

Goodwill

is the positive reputation and mutual respect that can benefit both parties in communication, often resulting from kind gestures or effective relationship management.

Conversational Style

A manner of speaking or writing that resembles natural, spontaneous conversation, often characterized by a casual and friendly tone.