In Determining the Extent to Which the Auditor May Use

question 40

Multiple Choice

In determining the extent to which the auditor may use the work of others in the audit of ICFR, the auditor should do all of the following except:

• A)be ready to document the extent to which he or she relied on the work.
• B)evaluate the risks associated with the controls subjected to the work of others.
• C)evaluate the competence and objectivity of the individuals who performed the work.
• D)All of these are required.

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Definitions:

Quality

The degree to which a product or service meets the requirements and expectations of customers.

Consistency

Use of the same accounting principles and methods from year to year within a company.

Accounting Principles

The rules and guidelines that companies follow in preparing financial statements, ensuring consistency and comparability.

Faithfully Representative

A qualitative characteristic of financial information that requires reported data accurately reflect the economic phenomena they represent, ensuring reliability and trustworthiness.