The Documentation of an Auditor's Understanding of Internal Controls

question 70

Multiple Choice

The documentation of an auditor's understanding of internal controls:

• A)is optional.
• B)must be exclusively in narrative, questionnaires, or flowchart form.
• C)must include flowcharts.
• D)can include any combination of narratives, questionnaires, or flowcharts.

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Definitions:

McClelland's Three-Need Theory

A motivational theory which states that the needs for achievement, power, and affiliation are key drivers of human behavior.

Need For Achievement

A psychological drive that motivates individuals to strive for success and excellence.

Need For Affiliation

A person's desire to form and maintain strong relationships, be part of a group, and feel connected to others.

Need For Affiliation

An individual's desire to build relationships and feel part of a group, important for understanding motivation and behavior in social settings.