During the First Phase of an Audit, a CPA Most

question 12

Multiple Choice

During the first phase of an audit, a CPA most likely would:

• A)identify specific internal control activities that are likely to prevent fraud.
• B)evaluate the reasonableness of the company's accounting estimates.
• C)evaluate the integrity of management.
• D)inquire of the company's attorney as to whether any unrecorded claims are probable or asserted.

---

Definitions:

Workers' Compensation Acts

Laws designed to provide financial and medical benefits to employees who are injured or become ill as a direct result of their job.

Litigation

The process of taking legal action in court to enforce or defend one's rights.

Injured Workers

Individuals who have suffered physical or psychological harm as a result of their work activities or conditions.

Title VII

A part of the Civil Rights Act of 1964 that forbids discrimination in employment due to an individual's race, color, religion, gender, or country of origin.