The Auditor's Primary Purpose in Auditing the Client's System of Internal

question 61

Multiple Choice

The auditor's primary purpose in auditing the client's system of internal control over financial reporting is

• A) to prevent fraudulent financial statements from being issued to the public.
• B) to evaluate the effectiveness of the company's internal controls over all relevant assertions in the financial statements.
• C) to report to management that the internal controls are effective in preventing misstatements from appearing on the financial statements.
• D) to efficiently conduct the Audit of Financial Statements.

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Definitions:

Population

The entire group of individuals or items that is the subject of a statistical analysis.

Average Age

A statistical measure that summarizes the central tendency of ages within a given group by dividing the sum of all ages by the number of individuals.

Random

An event or action occurring without any discernible pattern or predictability, often used in statistical sampling and assignments.

Census

A complete enumeration of a population or group, often used to gather demographic, social, and economic data.