As Part of Understanding the Internal Control,an Auditor Is Not

question 107

Multiple Choice

As part of understanding the internal control,an auditor is not required to

• A) Consider factors that affect the risk of material misstatement.
• B) Ascertain whether internal control policies and activities have been placed in operation.
• C) Identify the types of potential misstatements that can occur.
• D) Obtain knowledge about the operating effectiveness of the client's internal control activities.

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Definitions:

Consistent

Showing steady conformity to a standard, pattern, or expectation without any deviation or contradiction.

Laboratory Observation

Research method in which all participants are observed under the same controlled conditions.

One-Way Mirror

A mirror that is reflective on one side and transparent on the other, often used in observational research and police line-ups to observe subjects without being seen.

Research Method

A systematic plan for conducting research, including techniques and procedures for collecting and analyzing data to gain new knowledge or understand a topic better.