When Considering Internal Controls

question 15

Multiple Choice

When considering internal controls,

• A) auditors can ignore controls affecting internal management information.
• B) auditors are concerned with the client's internal controls over the safeguarding of assets if they affect the financial statements.
• C) management is responsible for understanding and testing internal control over financial reporting.
• D) companies must use the COSO framework to establish internal controls.

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Definitions:

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The skills and abilities that individuals acquire as they grow and develop, which progress at different rates for different people.

Learning Readiness

The state or degree to which an individual is prepared and motivated to acquire new knowledge or skills.

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