When Analyzing Exceptions, the Auditor Should Keep in Mind That

question 42

Multiple Choice

When analyzing exceptions, the auditor should keep in mind that

• A) all exceptions must be reported to management.
• B) they should determine the breakdown in the internal controls that allowed the exceptions to occur.
• C) the nature of an exception and its causes have no effect on the qualitative evaluation of the system.
• D) exceptions do not need to be analyzed if it is too costly.

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Definitions:

International Expansion

The process by which a company extends its business operations beyond its home country through establishing a presence in foreign markets.

Third-Country National

An individual employed in a country who is neither a citizen of that country nor of the country where the hiring organization is headquartered.

Multidomestic Corporation

A corporation with operations and subsidiaries in multiple countries, which modifies its business strategies and practices to suit local market conditions.

Canadian National

A leading rail and logistics company in North America, providing transportation and intermodal service solutions.