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:

Act of God

Natural events outside of human control, such as hurricanes, earthquakes, or floods, which are not caused by and cannot be prevented by humans.

Garage

A building or secured area designed for the storage and maintenance of vehicles.

Shed

A small building, typically made of wood or metal, used for storage or as a workshop, commonly found in gardens or backyards.

Sub-Bailment

A situation where a bailee (person who receives property) further entrusts the bailed property to another person, under a sub-bailment contract.