Auditors Typically Rely on Internal Controls of Their Private Company

question 3

Multiple Choice

Auditors typically rely on internal controls of their private company clients

• A) only as needed to complete the audit and satisfy Sarbanes-Oxley requirements.
• B) only if the controls are determined to be effective.
• C) only if the client asks an auditor to test controls.
• D) only if the controls are sufficient to increase control risk to an acceptable level.

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Definitions:

Inappropriate Boundaries

The violation of acceptable physical or emotional limits, which can harm relationships and personal well-being.

Nonadaptive Coping Skill

Behaviors or strategies that fail to manage or mitigate stress effectively and may worsen the situation or create additional problems.

Hanging Onto Anger

The act of persistently holding onto or harboring feelings of anger and resentment, which can have negative psychological and physical health effects.

Nonadaptive Coping Skill

A coping mechanism that reduces stress in the short term but is ineffective or harmful in the long term.