Auditors Typically Rely on Internal Controls of Their Private Company

question 67

Multiple Choice

Auditors typically rely on internal controls of their private company clients:

• A)only as needed to complete the audit and satisfy Sarbanes-Oxley requirements.
• B)only if the controls are determined to be effective.
• C)only if the client asks an auditor to test controls.
• D)only if the controls are sufficient to increase Control Risk to an acceptable level.

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Definitions:

Wages

Compensation paid to employees based on the hours worked or tasks completed, typically on a regular basis such as hourly or weekly.

Right Of Action

A legal right to commence a lawsuit.

Sold

A term indicating that an item, asset, or property has been transferred from one party to another in exchange for money or other compensation.

Defaults

Situations where a party fails to fulfill their obligations as specified in a contract or agreement.