When Planning an Audit of Internal Controls for an Issuer,the

question 28

Multiple Choice

When planning an audit of internal controls for an issuer,the audit team should

• A) Identify significant accounts, locations, and assertions.
• B) Conduct a walkthrough of the internal control process.
• C) Make inquiries of employees regarding the existence of control activities.
• D) Reperform control activities performed by client employees to determine their effectiveness.

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Definitions:

Circular Flow Model

An economic model that depicts how money and goods/services move through the economy in different markets between households and firms.

Resource Markets

Markets where resources like labor, capital, and raw materials required for production are bought and sold.

Workers

Individuals engaged in any form of labor, either employed or unemployed, contributing to the production of goods and services.

Production Costs

Production costs are the expenses incurred in the process of creating a product or service, including raw materials, labor, and overhead costs.