The Auditor Observes Client Employees in Obtaining an Understanding of the Internal

question 51

Multiple Choice

The auditor observes client employees in obtaining an understanding of the internal control in order to:

• A)prepare a flowchart.
• B)update information contained in the organisation and procedure manuals.
• C)corroborate the information obtained during the initial phases of obtaining an understanding of the internal control.
• D)determine the extent of compliance with quality control standards.

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Definitions:

Union Dues

Fees paid by members to labor unions for the support of union activities, including negotiations, legal representation, and other services.

Political Activity

Participation in any action aimed at influencing government policy or decisions, ranging from voting and lobbying to activism and public demonstration.

State Collective Bargaining Laws

Legislation at the state level that governs collective bargaining rights and processes for public and private sector employees.

Strikes

A work stoppage caused by the mass refusal of employees to work, typically aiming to enforce demands regarding employment conditions.