In an Audit of Financial Statements, an Auditor's Primary Consideration

question 8

Multiple Choice

In an audit of financial statements, an auditor's primary consideration regarding an internal control policy or activity is whether the policy or activity:

• A)reflects management's philosophy and operating style.
• B)affects management's financial statement assertions.
• C)provides adequate safeguards over access to assets.
• D)enhances management's decision making processes.

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Definitions:

Nursing Homes

Residential facilities providing long-term care for elderly or disabled individuals, offering medical care, daily living assistance, and rehabilitation services.

Own Homes

The condition or state of possessing and living in one's personal dwelling, as opposed to renting.

Social Connections

The relationships individuals form with others in their community, which can offer support, a sense of belonging, and increase well-being.

Community Ties

The connections, relationships, or bonds formed among members within a community, contributing to social cohesion and mutual support.