In Order for an External Auditor to Complete an Audit

question 20

Multiple Choice

In order for an external auditor to complete an audit of a public company, the entity's management must comply with all of the following except:

• A)accept responsibility for the effectiveness of the entity's internal control over financial reporting.
• B)evaluate the effectiveness of the entity's internal control over financial reporting using suitable control criteria.
• C)support its evaluation with sufficient evidence, including documentation.
• D)present an oral assessment of the effectiveness of the entity's internal control over financial reporting as of the end of the entity's most recent fiscal year.

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Definitions:

Internal Factors

Elements within an individual or organization that influence behavior, decisions, and outcomes, such as values, skills, attitudes, and emotions.

Cross-Cultural Research

The study of how cultural factors affect different human behaviors.

Attributions

The process by which individuals explain the causes of behavior and events, either attributing them to external or internal factors.

Cultural Differences

Variations in values, beliefs, practices, and customs among different societies and communities.