An Entity's Internal Controls Are Most Relevant to the Auditor

question 79

Multiple Choice

An entity's internal controls are most relevant to the auditor when the policies and procedures:

• A)affect the financial statement assertions.
• B)relate to management's planning decisions.
• C)address management's operating decisions.
• D)reflect management's philosophy and operating style.

---

Definitions:

Cultural Obstacles

Barriers related to cultural differences that hinder progress in negotiations, communication, and understanding between individuals or groups.

Supportive Cultures

Workplace environments that prioritize employee well-being and facilitate interpersonal connection and support.

Groupthink

A psychological phenomenon in which people in a cohesive group go along with the group consensus rather than offering their own opinions.

Subcultures

Groups within a larger culture that have their own distinct values, norms, and behaviors, often based on interests, occupations, or demographics.