The Primary Objective of Procedures Performed to Obtain an Understanding

question 59

Multiple Choice

The primary objective of procedures performed to obtain an understanding of the entity's internal control is to provide an auditor with:

• A)knowledge necessary for audit planning.
• B)evidential matter to use in assessing inherent risk.
• C)a basis for modifying tests of controls.
• D)an evaluation of the consistency of application of management's policies.

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Definitions:

Agreeableness

Agreeableness is a personality trait that signifies how cooperative, warm, and kind an individual is towards others.

Behavioral Tendencies

Patterns or propensities in individuals' actions and reactions under certain conditions or stimuli.

Reputations

The beliefs or opinions that are generally held about someone or something based on past actions or character.

Expectancy Effects

Phenomena where an experimenter's or observer's expectations about a participant can actually influence the outcome of a study or the behavior of the participant.