An Auditor's Study and Evaluation of the Internal Accounting Control

question 6

Multiple Choice

An auditor's study and evaluation of the internal accounting control system made in connection with an annual audit is usually not sufficient to express an opinion on an entity's system because:

• A)the audit cost-benefit relationship permits an auditor to express only reasonable assurance that the system operates as designed.
• B)the evaluation of weaknesses is subjective enough that an auditor should not express an opinion on the internal accounting controls alone.
• C)only those controls on which an auditor intends to rely are reviewed, tested and evaluated.
• D)management may change the internal accounting controls to correct weaknesses.

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Definitions:

Training Initiatives

Programs or projects undertaken by organizations to develop the skills and competencies of their employees, often with specific objectives and outcomes in mind.

Organizational Strategy

A planned course of action designed to achieve the long-term goals and objectives of an organization.

Negative Consequences

Undesirable outcomes that result from an action or lack thereof.

Needs Analysis Process

A systematic approach to identifying and assessing the training requirements of an organization or individuals.