In Obtaining an Understanding of an Entity's Internal Control in a Financial

question 44

Multiple Choice

In obtaining an understanding of an entity's internal control in a financial statement audit of a nonpublic company, an auditor is not obligated to:

• A)determine whether the control activities have been placed in operation.
• B)perform procedures to understand the design of the internal control policies.
• C)document the understanding of the entity's internal control components.
• D)search for significant deficiencies in the operation of the internal control.

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Definitions:

Motivational Problems

Issues or difficulties in finding the drive or desire to engage in or complete tasks, often impacting productivity and general mental health.

Lack of Motivation

A state where there is an absence of desire or willingness to take action or accomplish tasks.

Program Design

The process of planning and structuring the components and logic of a program or software to achieve specific goals.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby while removing waste products from the baby's blood.