The Primary Purpose of the Auditors' Study of Internal Control

question 35

Multiple Choice

The primary purpose of the auditors' study of internal control for a nonpublic entity is:

• A) To provide constructive suggestions to the client for improving its internal control.
• B) To report on internal control as required by Auditing Standard No. 5.
• C) To identify and detect fraud and irregularities perpetrated by client personnel.
• D) To determine the nature, timing, and extent of substantive procedures.

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Definitions:

Appropriate Emphasis

The proper level of importance or priority given to parts of a communication or project, ensuring clarity and effectiveness.

Knowledge Of The Company

An understanding of a company's history, values, culture, and products, often considered crucial for job applicants and employees.

Job Responsibilities

Specific duties, tasks, or functions that an individual is expected to perform as part of their employment role.

Exaggerated Discussion

A conversation or debate that makes something seem more important, better, or worse than it actually is.