An Audit Team's Responsibility Would Not Include

question 117

Multiple Choice

An audit team's responsibility would not include

• A) Designing client's internal controls.
• B) Documenting an understanding of a client's internal controls.
• C) Communicating internal control deficiencies.
• D) Assessing the effectiveness a client's internal controls.

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Definitions:

Merchandise

Goods bought for resale in the course of business, typically in a retail or wholesale establishment.

Payments

The act of transferring money in exchange for goods or services, or to settle debts.

Inventory System

A mechanism for tracking and managing items that a company holds in stock, covering aspects like ordering, storing, using, and selling these goods.

Perpetual

Continuing indefinitely without a predetermined end in the context of perpetual inventory systems that continually update to reflect buying and selling activities.