Other Than Inquiring of Management About Policies They Have Established

question 131

True/False

Other than inquiring of management about policies they have established to prevent illegal acts and whether management knows of any laws or regulations that the company has violated, the auditor should not search for illegal acts that do not have a direct effect on the financial statements unless there is reason to believe they may exist.

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Definitions:

Genetic Mapping

The process of determining the location and chemical sequence of specific genes on a chromosome.

Natural Selection

A process in biology whereby organisms that are better adapted to their environment tend to survive and produce more offspring.

Survival Of The Fittest

A concept in natural selection that suggests that organisms best adapted to their environment are more likely to survive and reproduce.

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.