Which of the Following Approaches Is Most Suitable for Auditing

question 72

Multiple Choice

Which of the following approaches is most suitable for auditing the finance and investment cycle?

• A)Perform extensive tests of controls and limit substantive procedures to analytical procedures.
• B)Ignore internal controls and perform extensive substantive procedures.
• C)Gain an understanding of internal controls and perform extensive substantive procedures.
• D)Ignore internal controls and limit substantive procedures to analytical procedures.

---

Definitions:

Whistle Blowing

Involves an employee or former employee of an organization calling public attention to serious wrongdoing or danger within the organization.

Moral Quality Circles

Groups focused on identifying, discussing, and solving ethical issues in the workplace to promote integrity and moral behavior.

Socially Responsible

A principle where individuals and organizations act in the best interests of society by taking into consideration the impact of their activities on the environment, consumers, employees, communities, and other stakeholders.

Organizational Practices

Established methods, procedures, or routines used within an organization to achieve its objectives.