The Level of Understanding of a Client's Internal Controls Required

question 88

True/False

The level of understanding of a client's internal controls required is less than what is required for an audit of only the financial statements.

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Definitions:

External Environmental Supply

Pertains to the external sourcing of resources or inputs that a company needs from its external environment to operate effectively.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.

Management Inventories

Tools or databases that track managerial skills and capabilities within an organization to aid in strategic planning and deployment.

Internal and External Sources

The origins of information or resources within (internal) or outside (external) an organization.