When Documenting Their Understanding of a Client's Internal Controls, Auditors

question 62

True/False

When documenting their understanding of a client's internal controls, auditors are required to use narratives.

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Definitions:

Political Appointee

A person appointed to a governmental position by a political leader, often based on their allegiance or qualifications.

Merit System Appointee

A person appointed to a position based on their abilities and qualifications rather than political affiliations or other non-merit factors.

Civil Service Employee

An individual who works for a government agency or department, often under a merit-based system as opposed to being appointed or elected.

Privatization

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.